a16z launches $1.1B fund to build the physical backbone of AI

The venture capital firm Andreessen Horowitz (a16z) is shifting its focus from pure software to the machines that run it. The company announced a new $1.1 billion fund dedicated to what it calls the “Machine Age,” aiming to accelerate the physical buildout of artificial intelligence. This move signals a major strategic pivot. a16z, long known for backing software startups, will now invest heavily in the hardware—such as data centers, energy systems, and robotics—required to support AI’s rapid growth. The fund’s name, “Machine Age,” reflects a belief that the next wave of technological progress will be defined by physical infrastructure, not just code. The firm’s partners argue that AI’s potential is currently limited by the physical world: chips, power, and manufacturing capacity. By funding companies that build this infrastructure, a16z hopes to remove those bottlenecks. While the firm has not disclosed specific companies yet, the fund’s creation is a clear signal to the market: the future of AI is not only digital, but deeply material.