Andreessen Horowitz Raises $1.1 Billion for AI Physical Infrastructure Fund

Andreessen Horowitz (a16z) has announced the launch of a $1.1 billion 'Machine Age Fund' dedicated exclusively to AI physical infrastructure investments. The fund will focus on AI chips, memory, networking, storage, data centers, and robotics — a significant shift away from the firm's traditional focus on software. General partner Martin Casado cited severe capacity constraints across the entire hardware supply chain as the primary reason for the strategic pivot. This move represents one of the largest single dedicated vehicles targeting AI hardware infrastructure and signals that leading investors now view hardware bottlenecks — not model quality — as the primary constraint on AI scaling. The fund has already begun making investments in promising AI hardware startups, targeting companies developing next-generation AI accelerators, memory solutions, and robotics platforms. (Original source: AI Impact Hub, August 29, 2026)