Andreessen Horowitz, the prominent venture capital firm also known as a16z, is aiming to raise $20 billion for a new growth-stage fund focused on artificial intelligence companies. This would mark the largest fund in the firm’s history and one of the largest ever in the venture capital space, Reuters news report said.
The fundraising effort is targeted at global investors, especially those seeking to invest in U.S.-based AI startups without regulatory complications. The move comes amid a broader geopolitical backdrop that includes President Donald Trump’s tariff initiatives aimed at reshoring manufacturing, which have made the U.S. tech sector increasingly attractive to foreign investors.
Andreessen Horowitz has pitched the fund globally, with international limited partners (LPs) viewing it as a gateway to American AI innovation. A16z has a history of raising massive funds, but this new effort is a significant leap even by its own standards.
If successful, the fund would be second only to SoftBank’s Vision Funds in size, which previously raised $100 billion and $56 billion respectively.
Andreessen Horowitz previously raised a $5 billion growth-stage fund as part of a $9 billion fundraise in 2022 and recently secured $7.2 billion in 2024 for various sector-specific funds. The current fund, still in early stages, may take months to close, with some LPs reportedly drawn by a16z’s previous fund performance and its connections to the Trump administration.
A large portion of the capital will be earmarked for follow-on investments in existing AI portfolio companies like Databricks and xAI. Andreessen Horowitz has also invested in other notable AI startups including Safe Superintelligence, Mistral, and has acquired OpenAI shares through secondary markets.
Reflecting its AI commitment, a16z has assembled thousands of Nvidia GPUs, which it offers to its portfolio companies to ease access to essential computing resources.
Founded in 2009, a16z has disrupted traditional venture capital by aggressively outbidding competitors and offering operational support to startups. Its debut fund of $300 million was considered unusually large at the time, and the firm now manages $45 billion in assets.
