Andreessen Horowitz Targets AI Supply Crunch With New $1.1 Billion Hardware Fund
Andreessen Horowitz has raised $1.1 billion for a new fund that aims to accelerate the buildout of artificial intelligence infrastructure by investing in founders who are “reinventing AI hardware,” the venture capital firm said in a Friday (Aug. 28) blog post. The Machine Age Fund will invest in computer infrastructure on which AI runs, including […] The post Andreessen Horowitz Targets AI Supply…
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.
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