Andreessen Horowitz Raises $7.2 Billion, AI Investments Lead the Charge

Andreessen Horowitz, one of Silicon Valley’s top venture capital firms, has raised $7.2 billion with AI investments a leading driver.

The venture capital firm announced it had raised $1 billion for its AI apps fund and $1.25 billion for its AI infrastructure fund.

More than half of the funds raised, $3.75 billion, came from Andreessen Horowitz’s growth fund, which targets late-stage funding opportunities.

The firm also raised $600 million each for its gaming fund and its “American Dynamism” fund which invests in projects that “support the national interest” like defense, education and manufacturing.

Co-founder Ben Horowitz said it marks an important milestone for the company.

“My partner Marc saw the new world coming and wrote about it in 2011 in a piece called, ‘Software is Eating the World,’” Horowitz wrote. “What he predicted then came true. In the past 10 years, nearly every significant business has been reimagined as a software company, and the market for these companies has, as a result, increased dramatically.”

Andreessen Horowitz has backed some of the biggest startups in AI, including ChatGPT maker OpenAI, French model developer Mistral, data platform company Databricks and synthetic voice creator ElevenLabs.

Investors are eager to fund companies developing AI technologies, owing to the success of OpenAI. Goldman Sachs predicts investments in generative AI could reach $200 billion globally by 2025.

Related:Saudi Arabia Plans $40B Investment in AI

Andreessen Horowitz’s commitment to investing in AI innovation doesn’t show signs of slowing. Reports surfaced last month of a potential partnership with Saudi Arabia’s Public Investment Fund to launch a $40 billion fund to invest in AI startups.