Andreessen Horowitz

Venture Capital · AI Infrastructure · Hardware

Launch

Andreessen Horowitz launches $1.1B Machine Age fund for AI hardware

The bet is that power grids and chip supply chains, not software, now decide how fast AI can scale.

• Andreessen Horowitz announced on August 28, 2026 that it raised $1.1 billion for a new Machine Age Fund dedicated to physical AI infrastructure.
• The venture firm built on the thesis that 'software eats the world' is now steering capital into chips, memory, networking, storage, data centers, robotics and home AI devices.
• Compute density per server rack jumped 28X moving from an Nvidia H100 rack to a Rubin rack, pushing rack power needs from 5-10 kW to 100-250 kW today, with 1 MW projected within three years.
• The fund adds to a16z's existing $1.25 billion infrastructure vehicle and a $1.7 billion infrastructure allocation carved out of a $15 billion-plus fundraise the firm closed in January 2026.
• A16z says hardware and infrastructure deals already make up over 20% of its recent startup pipeline, a sign the shift predates this fund's formal launch.
• By formalizing a hardware-first vehicle, a16z is betting that venture returns in AI will increasingly come from solving physical bottlenecks like power and cooling rather than from building software on top of existing infrastructure.