<div id="readability-page-1"><div>Andreessen Horowitz is doubling down on artificial intelligence—literally. The Silicon Valley powerhouse, co-founded by Marc Andreessen and Ben Horowitz, is in early talks to raise a massive $20 billion fund, making it the largest in the firm's history.If successful, it would be one of the biggest AI-focused funds ever, second only to SoftBank's Vision Funds.<h2>A $20 Billion Play For AI Dominance</h2>Reuters reported that the firm, commonly referred to as a16z, is pitching the fund to global investors who want access to U.S.-based AI startups. Don't Miss:<ul><li>‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum.</li><li>Hasbro, MGM, and Skechers trust this AI marketing firm — invest pre-IPO from $0.60 per share now.</li></ul>The fund will focus entirely on growth-stage companies, with a large chunk reserved for follow-on investments in existing portfolio startups such as Databricks, Elon Musk's xAI, and France-based Mistral. Andreessen Horowitz is also expected to lead the funding round for Thinking Machines Lab, a new venture from former OpenAI Chief Technology Officer Mira Murati. Reuters reported Thinking Machines Lab is already courting a valuation of $10 billion—even though it has yet to release a product.<h2>Fueling Startups With Hardware</h2>In October, a16z launched a new initiative called Oxygen, which gives its portfolio companies access to over 20,000 GPUs from Nvidia. TechCrunch reported that this private GPU cluster can be rented by startups in exchange for equity, addressing one of the AI industry's biggest bottlenecks: compute power.Trending: BlackRock is calling 2025 the year of alternative assets. One firm from NYC has quietly built a group of 60,000+ investors who have all joined in on an alt asset class previously exclusive to billionaires like Bezos and Gates.With demand for Nvidia chips soaring, this move allows a16z-backed startups to move fast without waiting on cloud providers or competing for limited hardware. The firm's strategy not only supports innovation but also reinforces its position as a major player in the AI development pipeline.<h2>Global Pitch, Political Ties</h2>The $20 billion megafund comes at a time of political and economic crosswinds. In 2023, a16z founders publicly backed President Donald Trump, a shift from their earlier Democratic leanings. Later, Horowitz and his wife, Felicia, announced a personal donation to groups supporting the Harris-Walz campaign, citing a long-standing friendship with then Vice President Kamala Harris. He emphasized that the firm's political stance remained aligned solely with its Little Tech Agenda.Investors are also watching the impact of Trump's proposed tariffs, which could affect the cost structure of AI infrastructure. Still, the global appetite for American AI remains strong, and a16z appears poised to tap into it while political conditions remain favorable.See Also: Mark Cuban Backs This Innovative Startup That Turns Videos into Games — Claim Your Share Now<h2>A Seat At The Mega-Fund Table</h2>While large by any standard, the $20 billion goal still falls short of SoftBank's original Vision Fund, which launched in 2017 with $100 billion. However, the follow-up Vision Fund 2 has faced headwinds—reporting a $2.4 billion loss.Meanwhile, Sequoia Capital's evergreen fund reached $19.6 billion by February. A16z, with $45 billion in assets under management, now seeks to join that elite club of high-stakes, high-impact VC players.Read Next:<ul><li>Are you rich? Here’s what Americans think you need to be considered wealthy.</li><li>Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.26/share!</li></ul>Image: Shutterstock</div></div>

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Andreessen Horowitz (a16z) is raising a $20 billion AI fund, the largest in its history, targeting growth-stage U.S. AI startups. The fund will support existing portfolio companies and new ventures like Thinking Machines Lab. Additionally, a16z has launched an initiative providing access to 20,000 Nvidia GPUs for startups, addressing compute power shortages. This move comes amid political shifts and potential tariffs affecting AI infrastructure costs, but global demand for American AI remains strong. The fund aims to position a16z among top VC players, despite being smaller than SoftBank's Vision Fund.

- Andreessen Horowitz is in discussions to raise a $20 billion fund focused on artificial intelligence, which would be the largest in its history.  
- The fund aims to invest in growth-stage companies and will reserve capital for existing portfolio startups, while also providing access to Nvidia GPUs to address compute power challenges.  
- This initiative comes amid political shifts and economic considerations, as the firm seeks to capitalize on strong global demand for U.S.-based AI startups.

A16z Unleashes $20 Billion AI Fund Fueled By 20,000 Nvidia GPUs As Marc Andreessen Bets Big On The Next Tech Superstars