Andreessen Horowitz eyes record US $20B AI fund amid shifting U.S. tech landscape

USA – Venture capital giant Andreessen Horowitz (a16z) is reportedly in the early stages of raising a record-setting US $20 billion fund dedicated to growth-stage investments in American artificial intelligence (AI) companies.

If successful, this would become the firm’s largest fund to date, reflecting the surging global interest in U.S.-based AI innovations and tech leadership.

The report, first released by Reuters on April 8, cites unnamed sources familiar with the matter and notes that the fundraising process may take several months to finalize.

The fund is expected to target international investors seeking exposure to the U.S. tech ecosystem, especially in the context of recent policy shifts under President Donald Trump, who is encouraging American-made technology and domestic production.

Should Andreessen Horowitz succeed, the fund would only be eclipsed in size by SoftBank’s Vision Funds, which previously raised US $100 billion and US $56 billion, respectively.

Comparatively, rival Sequoia Capital has over US $56 billion in assets under management, and one of its largest vehicles is currently valued at US $19.6 billion.

Andreessen Horowitz, with US $45 billion in current assets under management, is already a major player in the AI investment space. The firm has significant stakes in companies like Databricks and xAI, Elon Musk’s AI startup.

The new US $20 billion fund would reportedly focus in part on follow-on investments into its existing AI portfolio companies, reinforcing its commitment to long-term support for high-potential firms. In April 2024, the firm announced it had raised US $7.2 billion for technology-focused startups.

This included US $3.75 billion earmarked for later-stage startups under its “Growth” investment arm, US $1.25 billion for companies building AI infrastructure, and US $1 billion for those developing AI-driven applications.

However, the timing of this fundraising push comes amid volatility in the venture capital landscape.

A Bloomberg News report described a mood of crisis among Silicon Valley investors, likening it to the uncertainty at the onset of the COVID-19 pandemic.

Trump’s newly announced tariffs have also added pressure, contributing to stock market unease and potential concerns among foreign investors.

Despite these tensions, enthusiasm for AI remains strong. A Financial Times article reported that over US $30 billion had already been invested in tech startups in Q1 of 2025, with another US $50 billion in pending fundraising — much of it flowing into the AI space.