a16z Launches USD 1.1 Billion "Machine Age Fund" to Strengthen Investment in AI Hardware

Investment in Hardware and Infrastructure for AI Implementation,
Including Semiconductors, Memory, Data Centers, and Robotics
Growth Fund V Expanded to USD 8.5 Billion

Global venture capital firm Andreessen Horowitz (a16z) announced on September 9 that it has established a new "Machine Age Fund" focused on investment in hardware and computing infrastructure for the artificial intelligence (AI) era, with a fund size of USD 1.1 billion (approximately KRW 1.49 trillion). This move comes as the rapid expansion of AI applications drives the need for innovation across hardware and infrastructure supporting them.

In addition, a16z has attracted additional capital to its fifth Growth Fund, set up earlier this year, expanding the total size to USD 8.5 billion (approximately KRW 11.49 trillion).

Strengthening Investment in AI Hardware and Infrastructure

The Machine Age Fund targets broad physical infrastructure necessary for AI implementation. Investments will not only cover key computing infrastructure like semiconductors, memory, networking, and storage, but also hardware and systems required to operationalize AI in real-world settings such as data centers, robotics, and consumer AI devices.

As the scope of AI applications rapidly widens, a16z is expanding its support for AI infrastructure companies, building on its investment experience in the hardware and physical infrastructure sectors with companies such as SpaceX, Anduril, and Waymo.

The scale of the fifth Growth Fund, which supports technology companies entering full-fledged growth phases, has also increased significantly. Originally set up in January with a size of USD 6.75 billion (approximately KRW 9.13 trillion), it has grown to a total of USD 8.5 billion with additional capital injection. Over the past seven years, the a16z Growth team has supported more than 100 growth-stage companies.

Supporting Expansion into Asia Centered on the Seoul Office

a16z is also strengthening its support system for portfolio companies’ expansion into global markets. In June, the firm opened its first international office in Seoul and appointed Park Seongmo, a former executive at Naver, as Head of Asia-Pacific Go-To-Market (GTM).

Raghu Raghuram, General Partner at a16z, stated, "Through the establishment of this fund, we will provide broad support from early-stage startups to growth-stage companies, helping them enter new markets based on our global hubs, including the Seoul office."

This content was produced with the assistance of AI translation services.