Andreessen Horowitz is raising a $20bn AI-focused venture fund—its largest vehicle to date—as the firm doubles down on opportunities in the U.S. artificial intelligence market amid strong global investor demand.

According to sources cited by Reuters, the Silicon Valley-based venture capital giant is shifting from its usual multi-fund approach and will structure the raise as a single flagship fund. The vehicle will primarily target growth-stage AI companies and serve as a strategic entry point for international LPs looking to access the booming U.S. AI ecosystem.

If successful, the $20bn fund would be one of the largest venture capital funds ever raised, trailing only SoftBank’s Vision Funds. It would also surpass Sequoia Capital’s evergreen fund, which recently reached $19.6bn in assets.

The raise comes amid heightened interest from non-U.S. institutions seeking exposure to advanced AI technologies, particularly as geopolitical headwinds—including a proposed U.S. tariff regime under President Donald Trump—reshape cross-border capital flows.

A portion of the capital will be earmarked for follow-on investments in a16z’s existing AI portfolio, which includes Databricks, Mistral, Safe Superintelligence, and Elon Musk’s xAI. A16z has also purchased shares in OpenAI through secondary transactions and recently made a high-performance GPU cluster—featuring thousands of Nvidia chips—available to portfolio companies facing compute shortages.

The move builds on a16z’s $9bn fundraise in 2022 and $7.2bn secured across various strategies in 2024. With $45bn in assets under management, the firm has grown rapidly since its $300m debut in 2009. It now operates sector-focused vehicles across biotech, crypto, and defence.

The planned AI fund reflects the capital intensity of next-generation AI infrastructure and signals continued investor appetite for large-scale venture deployment, despite wider macroeconomic uncertainty.

Source: Reuters