Andreessen Horowitz (a16z), the Silicon Valley venture capital heavyweight, is reportedly in the market to raise approximately $20bn for a new AI-focused vehicle – its largest fund to date – as it looks to tap into sustained global investor appetite for US-based artificial intelligence opportunities, according to a report by Reuters.
The fund is expected to concentrate on growth-stage investments in AI companies, leveraging strong inbound interest from international LPs seeking access to American innovation in the sector. Sources say the vehicle is structured as a single, flagship fund, deviating from the firm’s prior multi-fund approach.
The firm has been actively marketing the fund to global institutions, positioning it as a strategic gateway for non-US capital to participate in the accelerating US AI boom – particularly as geopolitical dynamics, including a newly proposed tariff regime under President Donald Trump, reshape cross-border investment flows.
The move follows a16z’s previous $9bn raise in 2022, which included a $5bn growth-stage fund. In 2024, the firm secured $7.2bn across a suite of strategies. The proposed $20bn fund represents a significant step-change, one that would test the upper limits of LP risk appetite for large-scale venture deployment at a time of macroeconomic volatility.
If successful, the raise would position a16z’s new vehicle among the largest venture capital funds globally – surpassed only by SoftBank’s Vision Funds. Sequoia Capital, by comparison, manages over $56bn in AUM, with its evergreen fund reaching $19.6bn this year.
A portion of the new fund is expected to be allocated toward follow-on capital for existing portfolio companies in the AI space, including Databricks and Elon Musk’s xAI, both of which have recently closed multibillion-dollar rounds with participation from a16z.
The fund’s AI focus reflects not only market enthusiasm but also the capital intensity of the sector, particularly for ventures developing large language models that require substantial infrastructure investment. A16z has led or participated in significant rounds for startups such as Mistral, Safe Superintelligence, and xAI, and has acquired shares in OpenAI via secondary markets.
Founded in 2009, a16z has historically positioned itself as a disruptive force in venture capital, launching with a then-unprecedented $300m debut fund and rapidly scaling to $45bn in AUM. The firm registered as an RIA in 2019 to enable broader investment strategies, and today operates multiple sector-specific vehicles across biotech, crypto, and defence.
In a further indication of its commitment to the AI space, a16z recently assembled and made available a high-performance GPU cluster – featuring thousands of Nvidia chips – for portfolio companies struggling to access compute resources.
