Andreessen Horowitz has raised $1.1 billion for its newest artificial intelligence infrastructure fund, called the “Machine Age Fund,” as the venture capital firm looks to invest in the physical technologies required to support the rapid growth of AI.
The new fund will focus on AI computing infrastructure, including chips, memory, networking and storage. Its investment scope will also extend to data centres, robotics and home appliances, according to Andreessen Horowitz.
The fund represents a shift toward physical infrastructure supporting AI workloads, as increasing demand for computing capacity is creating constraints across hardware and supply chains. Andreessen Horowitz General Partner Raghu Raghuram said the new capital was raised in response to the growing requirement for physical technology to support AI startups.
Unlike a carve-out from the firm’s earlier $15 billion venture fund raised in 2026, the Machine Age Fund represents a separate pool of capital. According to Raghuram, the decision to establish a dedicated fund reflects the different requirements associated with investing in physical technology, including distinct underwriting considerations and the need for larger initial investments.
The new fund will primarily target early-stage startups, while also reserving a portion of its capital for more mature companies. The investment strategy is aimed at businesses developing the physical components and systems needed to expand AI computing capacity.
Andreessen Horowitz’s move comes as AI workloads continue to increase demand for computing resources. The firm believes that the rapid expansion of AI is creating bottlenecks throughout the infrastructure ecosystem, from computing hardware and memory to networking, storage and data-centre capacity.
Raghuram, who previously served as CEO of VMware, is among the partners leading the firm’s investment activity in the new fund. Martin Casado, who leads Andreessen Horowitz’s software-infrastructure investment strategy, is also involved in the fund.
While Andreessen Horowitz has invested in hardware companies previously, hardware has not historically been the firm’s primary investment focus. The increasing number of founders building companies around AI infrastructure and the growing constraints across the hardware supply chain have prompted the firm to establish a dedicated strategy for the sector.
The Machine Age Fund comes as venture capital investors increasingly look beyond AI software toward the physical infrastructure needed to sustain the industry’s expansion. AI systems require significant computing power, and the resulting demand is placing pressure on the availability of chips, memory, networking equipment, storage and other infrastructure.
For Andreessen Horowitz, the new fund provides a dedicated vehicle to back companies addressing these infrastructure requirements. Its focus on early-stage companies also gives the firm an opportunity to invest in startups developing technologies that could become part of the next generation of AI infrastructure.
The fund’s broader investment mandate, which includes data centres and robotics alongside core computing infrastructure, reflects the expanding physical footprint of artificial intelligence. As AI adoption increases, the infrastructure supporting these systems is becoming an increasingly important area for technology investment.
