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Venture capital firm Andreessen Horowitz aims to raise approximately $20 billion (marking the largest fund ever) to capitalize on global investors’ interest in backing American artificial intelligence firms.
The investment firm informs certain partners that this fund relies on worldwide investors committed to enhancing stage investments in AI enterprises and who are eager to invest in US businesses.
This initiative comes as the tariffs imposed by US President Donald Trump on various global trading partners are being addressed, with the intention to draw companies that produce goods in the US.
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Ben Horowitz from Andreessen Horowitz will present at the WSJTech Live Conference in Laguna Beach, California on October 22, 2019. (Reuters/Reuters Photos)
To secure this significant funding, Andreessen Horowitz is pitching globally, according to reports from Reuters.
The firm’s founders, venture capitalists Mark Andreessen and Ben Horowitz, disclosed last year their support for Trump, breaking from their usual backing of Democratic candidates.
If successful, the new Megafund will only be smaller than SoftBank’s two vision funds. Launched in 2017, SoftBank Vision Fund 1 is a historic $100 billion fund, while its successor, Vision Fund 2, manages close to $56 billion from SoftBank’s capital.
Ben Horowitz will speak on stage on November 8th, 2019, at the 11th annual conference 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, part of a $9 billion fundraising effort announced in 2022.
As reported by Reuters, the new fund is still in its preliminary stages and may take several months to finalize.
A considerable share of the capital is reportedly earmarked for further investments in AI firms within the company’s portfolio. The firm has been an early backer of several notable AI companies, such as Databricks and Elon Musk’s Xai.
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Venture capitalist Mark Andreessen will speak at the TechCrunch Disrupt Conference in San Francisco, California on Tuesday, September 13th, 2016. (Paul Chin/Getty Images/San Francisco Chronicle via Getty Images)
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Andreessen Horowitz has engaged in multi-billion dollar funding rounds as a principal investor for AI model developer startups such as Xai, Safe Superintelligence, and Mistral based in France, actively investing in various firms within this industry. The company also acquired shares of OpenAI through a tender offer in the secondary transaction market.
Reuters contributed to this report.
