Venture capital firm Andreessen Horowitz (a16z) has raised $1.1 billion for a new investment vehicle focused on accelerating the physical infrastructure needed to power the next phase of artificial intelligence (AI).
“This fund will invest into all of the computer infrastructure on which AI runs, including chips, memory, networking, and storage. It also includes full systems for running AI: from data centers to robotics to home AI appliances,” read a statement by a16z on X.
In the statement, a16z argues that the rapid evolution of AI, from chatbots to reasoning models, coding systems and increasingly sophisticated forms of knowledge work is driving a sharp increase in computing demand. At the same time, the physical infrastructure supporting AI is undergoing dramatic changes, noted the company.
— a16z (@a16z) August 28, 2026
Citing increase in compute density, networking within a rack, rack power and data centre scaling, the company said traditional hardware supply chains, which typically grow 20% to 30% annually, will need to scale far faster to meet AI demand.
While a16z is widely associated with software investing, the firm has a history of backing hardware and infrastructure companies, including Skydio, SpaceX, Anduril and Waymo.
The Machine Age Fund will be led by a team with experience spanning data centers, silicon, networking, AI infrastructure and U.S. manufacturing. a16z says its broader customer, talent and industry networks will also support hardware startups as they scale.
The firm is now inviting founders developing next-generation AI infrastructure and hardware to seek investment from the new fund, positioning the initiative as a major expansion of a16z’s hardware investment strategy.
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