Key Points:

• Venture capital firm Andreessen Horowitz (a16z) is seeking to raise $20 billion for its largest fund to date.
• The fund will focus on growth-stage investments in U.S. artificial intelligence (AI) startups.
• This move comes amid increasing interest from international investors in American tech companies.

Andreessen Horowitz, a prominent venture capital firm based in San Francisco, is in the process of raising approximately $20 billion, aiming to create the largest fund in its history. This effort is primarily driven by the burgeoning global interest in backing U.S. artificial intelligence companies, according to reports from Reuters and Channel News Asia, among others.

The investment firm, colloquially known as a16z, has communicated to its limited partners that this fund will specifically target growth-stage investments in AI firms. The strategy revolves around attracting global investors who are eager to invest in American enterprises without facing restrictive regulations. This fundraising endeavor coincides with ongoing economic challenges, including President Trump's influence promoting U.S. manufacturing, prompting interest from foreign investors looking for solid opportunities in the tech sector.

If successful, this new megafund would only be eclipsed by SoftBank's Vision Funds, which have previously deployed substantial capital into the tech industry with mixed results. A16z's largest existing fund, a $5 billion vehicle launched in 2022, set a precedent for scale in Silicon Valley.

The fund is expected to take several months to finalize as a16z pitches its offerings internationally, reflecting the evolving landscape of venture capital investments amidst global uncertainties. Sources suggest that a significant portion of the capital will be earmarked for follow-up funding for existing AI companies within A16z's portfolio, which includes notable names like Databricks and Musk's xAI.

A16z's strategy involves focusing on a single vehicle rather than diversifying across various sectors, highlighting the venture capital community's keen interest in AI and the substantial financial requirements needed for developing advanced technologies, particularly those involving extensive computing resources and data.

Founded in 2009 by Marc Andreessen and Ben Horowitz, A16z continues to position itself at the forefront of venture capital, having scaled its operations significantly and managing a reported $45 billion in assets. The firm's aggressive investments include participating as a lead investor in billion-dollar funding rounds for various AI startups.

For further details, refer to the original articles from SCMP and Channel News Asia.