Andreessen Horowitz raised $1.1 billion for its Machine Age Fund to invest in the physical infrastructure behind artificial intelligence. Announced on August 28, 2026, the fund targets chips, data centers and robotics, formalizing a hardware investment strategy rather than establishing a retreat from crypto.
Key Takeaways
- The $1.1 billion fund targets AI computing infrastructure and complete hardware systems.
- A16z says supply-chain constraints and rising computing demands underpin its investment strategy.
- The initiative builds on earlier hardware investments; the announcement does not disclose a cut to crypto funding.
Table of Contents
- What the Machine Age Fund will finance
- Why a16z is targeting physical infrastructure
- A dedicated fund builds on earlier hardware bets
- Conclusion
What the Machine Age Fund will finance
The fund’s mandate spans chips, memory, networking and storage, as well as complete systems such as data centers, robotics and home AI appliances. That scope extends beyond the software applications through which many users encounter AI.
A16z’s Machine Age Fund announcement describes a strategy focused on the equipment needed to run AI. The practical distinction is that the fund will back the underlying computing and physical systems, not simply software built on top of them.
The $1.1 billion is capital raised for the fund, not a disclosed total already invested in portfolio companies. The announcement does not provide a deployment timetable or a breakdown of allocations across its target areas.
| Item | Details |
|---|---|
| Skydio | A16z led its Series A in 2016. |
| Anduril | A16z first invested in 2019. |
| Waymo | A16z was among the first venture investors in its 2020 fundraising. |
Why a16z is targeting physical infrastructure
The firm argues that AI’s progression from chat toward reasoning, coding and other knowledge work is increasing demand for computing capacity. Its investment thesis is that existing supply chains and system designs need substantial upgrades to meet that demand.
A16z identifies faster interconnections, higher-bandwidth memory, more efficient devices, cooling and electrical infrastructure as areas requiring innovation. These are the firm’s stated reasons for investing, rather than assurances that demand or investment returns will meet its expectations.
The firm also said hardware startups had grown from a small share of its deal flow to more than 20% over the preceding couple of years. Deal flow measures opportunities being considered, not the share of capital ultimately invested.
A dedicated fund builds on earlier hardware bets
Although a16z described itself as generally known for software investing, it pointed to a history of backing hardware businesses. More recent investments named in the announcement include Unconventional AI, Nexthop, Volta, Atoms, Heron Power and Mind Robotics.
The dedicated fund makes hardware a formal investment focus supported by the firm’s talent, marketing and customer networks. It does not, by itself, establish that money is being redirected away from crypto or that existing crypto commitments have changed.
Conclusion
The next stage is the fund’s planned investment in AI hardware and infrastructure companies. A16z has identified its target technologies, but has not disclosed a deployment schedule or sector-by-sector allocations.
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