Andreessen Horowitz is in early talks to raise a $20 billion venture fund to invest in AI, according to a Reuters report.

If successful, this would be one of the largest venture funds in the history of the asset class—surpassed only by SoftBank’s flagship vision funds, which is often viewed as atypical for traditional venture capital, and Sequoia’s master fund, which has accumulated capital over a longer time period.

It would also exceed the total sum of US venture funds closed in Q1 of this year—$17.4 billion, according to PitchBook data.

The mega-fund would be four times larger than Andreessen’s previous record, a $5 billion late-stage fund, which closed at the last peak of venture fundraising in 2022.

This fundraising cycle is markedly different now: LPs have been waiting on substantial liquidity from venture for over two years, and the Trump administration’s tariffs have spiked market volatility and frozen any IPOs for the time being. Andreessen Horowitz has, however, seen a couple of exit deals in its portfolio: Wiz’s massive $32 billion sale to Google (pending regulatory approval) and the January IPO of Maze Therapeutics.

The firm seems bullish on its prospects: It has reportedly been touting its close ties to the Trump administration as a market advantage to LPs outside the US. The fund would invest in growth-stage AI companies, Reuters reported.

Such blue-chip venture firms have amassed massive war chests to invest in AI, even as liquidity for LPs has remained elusive. In 2024, Andreessen brought in over 11% of all capital raised by US venture funds, according to PitchBook data.

https://pitchbook.com/news/articles/a16z-raising-20b-more-capital-than-vc-2025-q1