a16z to raise $20 bn AI megafund

ALSO: Trump to support AI dominance with coal power

Author

Algot Persson
April 08, 2025

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In Today’s Issue:

  • a16z to raise $20 bn AI megafund

  • Trump to support AI dominance with coal power

Read time: 2 minutes

a16z to raise $20 bn AI megafund

The renowned AI venture capital firm Andreessen Horowitz seeks to raise a $20 billion megafund. To put the number into perspective, it would be its largest fund to date, surpassing a16z’s $5 billion growth-stage fund from a $9 billion fundraise in early 2022. It would position itself along other investment giants like Softbank’s Vision Fund.

Interestingly, a16z is reportedly aligning its fundraise with Trump administration policies, particularly around reshoring U.S. manufacturing and tech dominance. This political alignment positions the firm to benefit from favorable regulatory conditions and appeals directly to sovereign wealth funds and strategic LPs looking to capitalize on “America-first” AI opportunities.

The megafund consolidates capital into a single, flexible vehicle rather than dispersing it across multiple strategies, giving a16z the ability to write larger checks and lead late-stage rounds in frontier AI companies. The structure matches the capital-intensive nature of AI infrastructure and foundation models, and meets growing investor demand for concentrated exposure to U.S.-based AI innovation.

a16z

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Trump to support AI dominance with coal power

President Trump is signing an executive order to boost coal mining and reopen power plants, framing coal as essential to powering energy-hungry AI data centers. The move includes classifying coal as a critical mineral and expanding federal land leases—all part of a strategy to maintain U.S. dominance in AI and counter China’s rise.

Data centers consume about 1% of global electricity. A significant portion of that energy comes from coal. 15% of U.S. power generation comes from coal, down from 50% in 2000. As demand for power consumption grows, so does demand for cheap electricity. U.S. power consumption is projected to rise by 55% by 2040.

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