Andreessen Horowitz Announces $1.1B ‘Machine Age Fund’ for AI Hardware & Infrastructure Investments
aiinsider ·
Andreessen Horowitz (a16z) announced a new $1.1 billion Machine Age Fund dedicated to AI hardware and infrastructure, including chips, memory, networking, data centers, robotics, and edge devices. The firm says rising AI demand is pushing computing density, rack power, and data-center scale beyond current supply-chain and physics limits. A16z notes that hardware startups now account for more than 20% of its deal flow, and that suppliers used to 20-30% annual growth may need triple-digit growth to keep pace. The fund will invest across the AI infrastructure stack, from semiconductors and storage to complete systems and even electricity. A16z highlighted that compute density per rack has increased 28-fold from an H100 rack to a Rubin rack, while rack power has risen from 5-10 kilowatts to 100-250 kilowatts and could reach 1 megawatt. Recent investments include Unconventional AI, Nexthop, Volta, Atoms, Heron Power, and Mind Robotics, with earlier hardware bets including Skydio, SpaceX, Anduril, and Waymo.
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