Andreessen Horowitz Raises $1.1B for AI Infrastructure Fund

Venture capital firm Andreessen Horowitz has raised $1.1 billion for a new fund dedicated to investing in the physical infrastructure required to power artificial intelligence. The firm announced the Machine Age Fund on August 28, 2026, stating it will target companies building the hardware and systems that underpin AI, from chips and memory to data centers and robotics.

The fund represents a significant expansion of the firm's focus beyond software, addressing what it describes as a critical bottleneck in the AI industry. According to the firm, the scale of computing infrastructure needed for AI has increased sharply, with rack-level power requirements in data centers projected to surge from 5-10 kilowatts to between 100-250 kilowatts for current systems, and potentially reaching up to 1 megawatt over the next three years.

General partners Martin Casado and Raghu Raghuram will lead the new strategy, which will invest in both early-stage and growth-stage companies. The fund will cover the full stack of AI infrastructure, including chips, memory, networking, storage, and complete systems such as data centers, robotics, and home AI appliances.

The launch comes as AI workloads grow...