Andreessen Horowitz Launches ‘Machine Age’ Fund to Tackle AI Supply Bottlenecks
The SpaceX and Anduril backer wants to expand its investments in chips, robots and other hardware.
Andreessen Horowitz, the venture capital firm, has raised $1.1 billion for a new $1.1 billion fund aimed at accelerating the development of artificial intelligence infrastructure, as reported by PYMNTS.com on August 28, 2025. The new Machine Age Fund invests in hardware components such as chips, memory, networking, storage, data centers, robotics, and home AI appliances.
The fund's aim is to address the growing demand for faster, more efficient, cheaper, and higher-bandwidth AI systems by innovating and investing in hardware solutions, from electricity to real estate. According to the firm, the current growth rate in the hardware industry is insufficient to meet the rapid expansion required to meet the increasing demand for AI infrastructure.
The Machine Age Fund is an extension of Andreessen Horowitz's previous $1.7 billion fund, established in 2024, which focused on AI software for technical buyers. The fund's performance has been lauded as one of the best, according to co-founder Ben Horowitz. Other companies in the AI sector, such as MGX and USD.AI, are also making significant investments in AI technology to support the growing demand.
Written by urgent.news from PYMNTS's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
