A major move is reportedly underway in the world of venture capital: Andreessen Horowitz (a16z) is planning to launch a $20 billion mega fund aimed at capitalizing on the surging global interest in U.S.-based artificial intelligence companies.
According to a Reuters report, the Silicon Valley-based VC firm—founded in 2009 by Marc Andreessen and Ben Horowitz—is gearing up to launch the largest fund in its history, with a strong focus on growth-stage AI startups.
Sources close to the matter say the firm has informed its limited partners that the fund will primarily target growth-stage AI companies and is being actively marketed to investors around the world. International LPs reportedly view the fund as a strategic way to access American AI ventures without the usual regulatory hurdles.
Known for raising outsized funds and pushing boundaries in the venture capital space, a16z first made waves with its $300 million debut fund. Its previous largest growth-stage vehicle was a $5 billion portion of a $9 billion fund package launched in 2022.
As an early investor in prominent AI companies such as Databricks, Mistral AI, Safe Superintelligence, and xAI, a16z is expected to allocate a significant portion of the new fund to follow-on investments in its existing portfolio. The remainder will be used to support promising early-stage AI startups.
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