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Venture capital firm Andreessen Horowitz is looking to raise about $20 billion — which would be the largest fund in its history — to take advantage of global investors’ interest in supporting U.S. artificial intelligence companies.
The tech investment firm has told some partners that the fund will be dedicated to growth-stage investments in AI companies and draw upon global investors seeking to invest in U.S. companies, according to Reuters.
This comes amid sweeping tariffs U.S. President Donald Trump has imposed on many global trading partners, with one of his goals being to attract companies to manufacture goods in the U.S.
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Ben Horowitz of Andreessen Horowitz speaks at the WSJTECH live conference in Laguna Beach, California, October 22, 2019. (Reuters / Reuters Photos)
To raise the substantial fund, Andreessen Horowitz has been making its pitch around the world, Reuters reported.
The company’s founders, venture capitalists Marc Andreessen and Ben Horowitz, announced last year they would support Trump, despite traditionally supporting Democrat candidates.
If successful in raising the money, the new megafund would be surpassed only by SoftBank’s two Vision funds. SoftBank Vision Fund 1, launched in 2017, was a record-breaking $100 billion fund, while its successor, Vision Fund 2, manages about $56 billion from SoftBank’s balance sheet.
Ben Horowitz speaks onstage at the WIRED25 Summit 2019 – Day 1 at Commonwealth Club on November 8, 2019, in San Francisco, California. (Phillip Faraone/Getty Images for WIRED / Getty Images)
Andreessen Horowitz’s largest fund to date is a $5 billion growth-stage fund it raised as part of a $9 billion fundraiser announced in 2022.
The new fund is still in its early stages and could take several months to close, according to Reuters.
A sizable portion of the capital would be set aside for follow-on investments into AI companies in the firm’s portfolio, the outlet reported. The company was an early backer in some notable AI companies, including Databricks and Elon Musk’s xAI.
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Venture capitalist Marc Andreessen speaks at the TechCrunch Disrupt conference in San Francisco, California, on Tuesday, Sept. 13, 2016. (Paul Chinn/The San Francisco Chronicle via Getty Images / Getty Images)
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Andreessen Horowitz has already been aggressive in supporting several companies in the field, participating in billion-dollar funding rounds as a lead investor in AI model developer startups including xAI, Safe Superintelligence and France-based Mistral. The firm has also bought shares of OpenAI through a tender offer in the secondary transaction market.
Reuters contributed to this report.
