Andreessen Horowitz Seeks $200 Billion for AI Growth Fund Amid Global Interest

Andreessen Horowitz, commonly known as a16z, is seeking to raise a massive $200 billion fund, which would be the largest in its history. This fund is specifically targeted at growth-stage investments in artificial intelligence (AI) companies, aiming to attract global investors who are keen on backing American AI firms. The move comes at a time when there is heightened global interest in investing in the U.S. AI sector, despite the complexities introduced by Trump's tariff plans.

a16z has been actively pitching this fund to potential investors worldwide. The firm has informed its limited partners that the fund will be dedicated to growth-stage investments in AI companies, appealing to global investors who are eager to invest in the U.S. AI market. This significant fundraising effort is taking place against the backdrop of Trump's tariff policies, which have added layers of complexity to the global investment landscape.

To secure such a substantial amount of capital, a16z has been conducting global roadshows. One source revealed that international limited partners view this fund as an easier and less restricted way to invest in U.S. AI companies. The firm's founders, Marc Andreessen and Ben Horowitz, have historically supported Democratic candidates, but they publicly endorsed Trump in the previous year, aligning with other prominent Silicon Valley figures like Elon Musk.

This new fund represents a significant increase in scale, even for a firm known for raising some of the largest investment vehicles in Silicon Valley. In an era of global economic uncertainty, it will test the appetite of limited partners for venture capital and continue the debate on the scalability of this asset class while maintaining attractive returns. If successful, this new fund would be the second-largest in size, trailing only SoftBank's Vision Funds. SoftBank's Vision Fund, launched in 2017, was a record-breaking $100 billion fund, while its successor, Vision Fund II, manages approximately $560 billion from SoftBank's balance sheet. Another prominent Silicon Valley venture capital firm, Sequoia Capital, manages over $560 billion across multiple funds, with its Evergreen Fund growing to $196 billion this year.

a16z's largest fund to date was a $50 billion growth-stage fund announced in early 2022. Similarly, in 2024, the firm successfully raised $72 billion from limited partners for a series of funds focused on different sectors or stages of startup development, with $37.5 billion allocated to a growth fund. The new fund is expected to take several months to fully raise, with some limited partners attracted by the performance of a16z's previous large funds, including a dedicated cryptocurrency investment fund, as well as the firm's close ties to the Trump administration.

a16z is one of the earliest investors in some of the hottest AI companies, including Databricks and Elon Musk's xAI. The firm continues to participate in these companies' multi-billion-dollar growth financing rounds. By requesting limited partners to support a single fund rather than multiple funds focused on different sectors, a16z highlights both its obsession with AI and its need for substantial capital, particularly for companies developing large language models that require extensive computational power and data.

a16z has been very active in supporting numerous companies in this field, leading multi-billion-dollar financing rounds for AI model development startups such as xAI, Safe Superintelligence, and France's Mistral. The firm has also acquired OpenAI shares through secondary market tender offers. Founded in 2009, a16z made a bold entrance into the venture capital industry with its ambitious goal of disrupting the sector through scale. The firm has consistently raised funds larger than industry standards and outbid traditional blue-chip investors to secure stakes in promising startups. It has also made transactions more attractive by hiring a large number of employees to support these companies.

Its first $3 billion fund was considered massive at the time. According to its website, a16z currently manages $450 billion in assets. In 2019, it became a registered investment advisor, gaining greater flexibility in its investment approach beyond traditional venture capital. The company operates several funds focused on specific sectors, including biotechnology, cryptocurrency, and defense technology. For AI companies, a16z has recently integrated thousands of NVIDIA graphics processing units (GPUs) and promoted their availability for rent to startups in its portfolio, which might otherwise struggle to obtain these chips.