Report: Andreessen Horowitz Seeks to Raise $20 Billion for American AI Startups
Andreessen Horowitz is reportedly seeking to raise $20 billion for a tech investment fund focused on growth-stage investments in American artificial intelligence (AI) companies.
The fund will seek global investors that want to invest in the U.S. tech industry at a time when President Donald Trump is encouraging companies to make products in the U.S., Reuters reported Tuesday (April 8), citing unnamed sources.
It is in its early stages and could take several months to close, according to the report.
Andreessen Horowitz did not immediately reply to PYMNTS’ request for comment.
The new fund would be the venture capital firm’s largest ever and would be surpassed only by two SoftBank Vision Funds, one of which raised $100 billion while the other raised $56 billion, the report said.
Sequoia Capital, which has over $56 billion in assets under management, has a fund that now stands at $19.6 billion, per the report.
Andreessen Horowitz currently has $45 billion of assets under management, according to the report.
A large part of the firm’s new fund would be devoted to follow-on investments into AI companies in its portfolio, which includes Databricks and xAI, the report said.
Andreessen Horowitz announced in April 2024 that it raised $7.2 billion to invest in tech startups, including those in the AI sector.
The firm said at the time in a press release that the bulk of the funding — $3.75 billion — would go to projects in its “Growth” category, for latter-stage startups, while $1.25 billion would be allocated for firms building AI infrastructure and $1 billion for startups creating AI applications.
It was reported Tuesday that the venture capital/startup space is in crisis mode as Trump’s new tariffs rock the global stock market.
The Bloomberg News report likened the mood inside Silicon Valley VC firms as the week began to the start of the pandemic five years ago.
On March 10, it was reported that excitement for AI had brought American startup investment to a three-year high, with much of this funding from the venture capital space being focused on a few very large private tech firms.
A Financial Times report said upward of $30 billion had been invested in tech startups at that point in the first quarter, with another $50 billion in fundraising in the works.
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