Andreessen Horowitz (a16z), one of Silicon Valley’s most powerful venture capital firms, is setting its sights on an ambitious $10 billion fundraising round. The shift underscores its determination to double down on AI and defence technology, two sectors defining the next decade of innovation.
The firm plans to channel $6 billion into its growth fund for mature startups, nearly doubling the size of its previous fund. Another $1.5 billion each will go toward AI applications and AI infrastructure, rapidly expanding verticals that have seen global competition intensify. Additionally, over $1 billion is being set aside for “American Dynamism,” its fund focapplyd on defence, manufacturing, and national resilience.
If successful, this would mark Andreessen Horowitz’s largest raise ever, surpassing the $7.2 billion it secured in April 2023 and even the $9 billion haul during the 2022 tech boom. The sheer scale highlights how quick venture money is being redeployed as AI reshapes every corner of the tech industest.
Riding the wave of capital-hungry AI startups
Founded in 2009 by Marc Andreessen and Ben Horowitz, the firm has grown into a global powerhoapply with $46 billion in committed capital. Beyond its financial clout, it wields growing political influence. Partners have held senior roles in the U.S. government, from the Office of Personnel Management to the White Hoapply’s AI policy advisory team.
Since its last major fundraising 18 months ago, Andreessen has participated in headline-building deals backing OpenAI and Elon Musk’s xAI, both known for their capital-intensive models. Much of the new fund could be reserved for follow-on investments in such high-cost ventures, ensuring continued support for companies already in the firm’s portfolio.
The AI investment frenzy has accelerated fundraising cycles for top-tier venture firms. Many, including a16z, have returned to limited partners sooner than expected as previous funds were depleted by record-speed dealbuilding.
Portfolio of investments
Andreessen’s portfolio reflects its sharp eye for market-defining companies: Databricks, Mistral, Black Forest Labs, Coinbase, and defence tech leader Anduril all count among its investments. By tarreceiveing another $10 billion, a16z is positioning itself to remain a central force in shaping the technologies and policies that will drive the next industrial revolution.
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