Andreessen Horowitz raises $1.1B AI infrastructure fund

Andreessen Horowitz has established a $1.1 billion fund called Machine Age Fund to invest in artificial intelligence infrastructure startups. The fund focuses on companies that manufacture data center equipment such as chips, memory, and networking gear, as well as providers of edge AI hardware. This includes smart home appliances and robots.

The fund will boost Andreessen Horowitz's existing AI investment program, which has already backed over a half-dozen AI infrastructure startups in the past two years. In 2025, the firm invested in Heron Power Inc., a company developing solid-state transformers for data centers. These transformers, which replace metal coils with power management chips, offer higher cost-efficiency and faster lead times.

The hardware industry supply side has historically grown at most 20% to 30% annually, but Andreessen Horowitz's general partners believe a triple-digit growth is needed to meet demand quickly. The venture capital firm's team comprises tech industry veterans with experience in data center management software and Intel's data center business.