Why a16z Launched the Machine Age Fund | Jen Kha

The $1.1 billion Machine Age Fund targets the physical infrastructure essential for AI, moving beyond software to address critical bottlenecks in chips, custom silicon, networking, and data centers. Because AI workloads are significantly more compute-intensive than previous internet-era technologies, existing infrastructure requires a complete overhaul to support future demand. Global competition is accelerating this shift, as nations like South Korea and El Salvador prioritize AI adoption as a core national utility. Andreessen Horowitz, represented by Managing Partner Jen Kha, focuses this fund on early-stage investments to maximize ownership in companies rebuilding the physical stack. While political headwinds regarding data center power and water usage persist in the United States, the next generation of hardware is being designed to optimize energy efficiency and performance, positioning these physical assets as the foundational layer for the next era of technological growth.