Andreessen Horowitz has raised $1.1 billion for a new fund dedicated to the physical infrastructure behind artificial intelligence, the US venture capital firm announced on Friday, August 28. Called the Machine Age Fund, it will back technologies spanning semiconductors, memory, networking, storage, data centers, edge devices, robotics and home AI appliances.
The announcement marks a formal expansion of the Silicon Valley investor's hardware strategy at a time when AI developers are demanding more computing capacity and electricity. Andreessen Horowitz said increasingly intensive reasoning, coding and agent workloads are shifting bottlenecks away from software alone and toward manufacturing, energy, cooling and computer systems.
The firm said the fund will seek companies working across the full infrastructure stack, including faster chips, higher-bandwidth memory, scalable interconnects and more power-efficient devices. It also identified construction materials, electrical equipment, cooling and real estate for data centers as areas requiring innovation, although it did not disclose investors in the fund, deployment schedules or typical investment sizes.
Andreessen Horowitz presented several figures to explain its strategy. It estimated that compute density per server rack has increased 28-fold between Nvidia's H100 and Rubin generations, while rack power has risen from roughly 5 to 10 kilowatts to between 100 and 250 kilowatts. The firm expects some racks to approach one megawatt within three years and said data-center campuses are moving from tens of megawatts toward hundreds of megawatts or, in some cases, gigawatt scale.
Those projections are the investment firm's assessments rather than independently audited industry forecasts. Independent reports from TechCrunch, SiliconANGLE and PitchBook confirmed the $1.1 billion raise and its hardware mandate. SiliconANGLE reported that the vehicle expands Andreessen Horowitz's existing AI investment program, while PitchBook described its targets as data centers, chips, networking and memory.
The firm said hardware-related startups now account for more than 20 percent of the investment opportunities it sees, up from a small share several years ago. It cited existing bets including chip, networking, power and robotics companies and said the new vehicle makes hardware an official investment focus. The fund's impact will depend on which companies receive capital and whether they can ease the supply, power and engineering constraints that Andreessen Horowitz says are limiting AI expansion.
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