a16z Launches $1.1 Billion Machine Age Fund, Expands AI Hardware Infrastructure Push

Andreessen Horowitz, the global venture capital firm known as a16z, has launched a new $1.1 billion fund focused on artificial intelligence hardware and computing infrastructure. It also expanded its growth-stage technology fund to $8.5 billion.

a16z announced on September 9 that it had launched the $1.1 billion Machine Age Fund. The fund will invest in core computing infrastructure, including semiconductors, memory, networks and data storage. It will also target hardware and systems needed to bring AI into real-world use, including data centers, robots and consumer AI devices.

The firm said physical infrastructure is becoming more important as AI services rapidly expand beyond simple conversation into reasoning, coding and workplace automation. To meet rising demand for AI computing, it said additional technological development and investment will be needed across the supply chain, including in power, cooling and data transmission networks, not just semiconductors.

a16z has previously invested in hardware-based technology companies including SpaceX, defense company Anduril and autonomous driving company Waymo. With the launch of the Machine Age Fund, it plans to develop AI hardware and physical infrastructure into a standalone core investment category.

The firm also increased the size of its fifth growth fund, which supports growth-stage companies. After raising $6.75 billion in January, a16z brought in an additional $1.75 billion, lifting the fund's total size to $8.5 billion. The growth fund invests in technology companies that have demonstrated product competitiveness and entered a phase of broader market expansion. a16z's growth team has backed more than 100 growth-stage companies over the past seven years.

a16z also plans to strengthen the a16z Growth Platform, which supports portfolio companies after investment. It intends to expand functions that help companies scale, including recruiting, building global networks, media support, sales and marketing, and pricing strategy.

The firm is also stepping up its push into Asia. In June, a16z opened a Seoul office and appointed former Naver executive Park Sung-mo as head of go-to-market strategy for Asia-Pacific. Using the Seoul office as a hub, it plans to help portfolio companies expand into South Korea and Asia, while also identifying opportunities to work with Korean companies.

Ragu Raghuram, a general partner at a16z, said innovation in hardware and infrastructure is becoming increasingly important as AI adoption accelerates. He added that the firm will support companies ranging from early-stage startups to growth-stage businesses and use its global footprint to help them expand overseas.