April 9, 2025 – Andreessen Horowitz (a16z), a prominent Silicon Valley venture capital firm, is reportedly gearing up to raise an unprecedented $20 billion for a new fund dedicated to artificial intelligence (AI) investments, according to a recent report from Coin68. If successful, this ambitious initiative would mark the largest fund in the firm’s history, positioning it as one of the most significant players in the global AI investment landscape.
The planned $20 billion fund surpasses a16z’s previous efforts, dwarfing its $4.5 billion growth fund announced in 2022 and the $7.2 billion aggregated fund launched in 2024. Sources indicate that a portion of the capital will be allocated to follow-on investments in AI startups already within a16z’s portfolio, such as Databricks, Elon Musk’s xAI, and OpenAI.
This move comes amid a surge of global investor interest in the U.S. AI market, fueled by technological advancements and favorable economic policies under President Donald Trump’s administration, including new reciprocal tariffs that could drive capital inflows into the United States.
Founded in 2009 and headquartered in Menlo Park, California, a16z has established itself as a leading investor across various tech sectors, including AI, biotech, health, gaming, fintech, consumer products, and cryptocurrency. The firm’s early bets on transformative AI companies have solidified its reputation as a visionary force in the industry. Beyond its financial clout, a16z’s close ties to the Trump administration—underscored by public endorsements from founders Marc Andreessen and Ben Horowitz—may further enhance its appeal to international investors seeking stability and influence in the U.S. market.
Should a16z achieve its $20 billion target, the fund would rank among the largest venture capital pools ever raised, trailing only SoftBank’s Vision Fund 1 ($100 billion) and Vision Fund 2 ($56 billion). Analysts view this as a bold test of the venture capital model’s resilience in a volatile global economy, with AI positioned as the centerpiece of future growth. The firm’s extensive political network and proven track record in backing high-profile AI ventures signal its readiness to lead in what many are calling the next technological frontier.
This development underscores the accelerating race among venture capital giants to capitalize on AI’s transformative potential. As the industry continues to evolve, a16z’s latest fundraising effort could set a new benchmark for investment in cutting-edge technology, with implications for startups and markets worldwide. Further details on the fund’s structure and timeline are expected to emerge as negotiations with global investors progress.