Andreessen Horowitz Launches 1.1 Billion Dollar Machine Age Fund for AI Hardware

Andreessen Horowitz announced the Machine Age Fund on August 28, 2026, a $1.1 billion investment vehicle targeting the physical infrastructure of artificial intelligence.

The fund focuses on five layers of the AI hardware stack: compute chips and processors, memory and networking, data centers, power systems, and edge devices for robotics and home appliances. The firm said the fund addresses supply chain bottlenecks that are limiting AI development more than software constraints.

Managing partner Raghu Raghuram and partners including Martin Casado, Guido Appenzeller, and David Ulevitch are leading the fund. Appenzeller previously served as CTO of Intel's Data Center Group.

The firm said hardware startups have grown from a small fraction of its deal flow to more than 20 percent in recent years. The Machine Age Fund is designed to provide capital to mid-stage hardware companies that are too mature for seed funding but not yet ready for public markets.

Andreessen Horowitz pointed to the rapid increase in rack power density as an example of the physical constraints facing AI development. Rack power has grown from 5 to 10 kilowatts three years ago to 1 megawatt today, straining existing data center infrastructure and electrical grids.

The firm has previously invested in hardware companies including SpaceX, Anduril, Skydio, and Waymo. Recent additions to its hardware portfolio include Unconventional AI, Nexthop, Volta, Atoms, Heron Power, and Mind Robotics.

The fund launch comes as AI infrastructure investment has surged globally. SpaceX is planning a $100 billion Louisiana spaceport to support thousands of Starship launches, and Marvell has a $120 billion custom chip partnership with Google.