Andreessen Horowitz wants to invest more heavily in artificial intelligence (AI), and the venture capital firm is reportedly seeking funds from Limited Partners (LPs) around the world to do so. Insiders claim that Andreessen Horowitz will spend the next few months collecting money from LPs, with plans for its latest fund to reach $20 billion, reports Reuters.
Andreessen Horowitz has reportedly pitched this new AI fund as a way for foreign LPs to invest in American AI companies more easily. It would also be the largest fund in the company’s history, highlighting its dedication to AI investments.
Andreessen Horowitz’s AI Interest
Andreessen Horowitz’s interest in an AI fund makes sense. Not only is the industry still booming, even with some recent setbacks, but the firm also already has stakes in several AI companies. The venture capital firm was an early investor in Databricks and Elon Musk’s xAI, while also taking part in funding rounds for Safe Superintelligence and Mistral. It also acquired shares of OpenAI via a secondary tender offer.
The Andreessen Horowitz AI fund news also comes after President Donald Trump announced a $500 billion private-sector investment in developing AI in the U.S. Additionally, the Trump administration recently announced new policies that require federal agencies to prioritize American AI companies for contracts.
AI Stocks to Invest In
Retail investors who want to get in on the AI boom can still do so with several major companies expected to see huge upsides. Some of the top investments worth considering include Nvidia (NVDA), Amazon (AMZN), Micron (MU), Meta Platforms (META), and Microsoft (MSFT).
Each of these companies has a Strong Buy consensus rating, with MU and NVDA offering the largest upside potential at 97.82% and 81.79%, respectively. The upside potential for AMZN, META, and MSFT is also high, landing in the 40% to 50% range.
