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https://finance.yahoo.com/news/andreessen-horowitz-makes-3-billion-121031191.html

The venture capital firm, which goes by the nickname a16z, set up a dedicated $1.25 billion war chest in 2024 for bets on AI infrastructure, a term that the fund defines more broadly than the costly chips and data centers that make AI run. This month, the firm said it would commit another $1.7 billion to the effort.

To a16z, the word infrastructure encompasses any AI software marketed to technical buyers, rather than consumers. Think coding applications, foundational models and networking security, among others. “Some of the most important companies of tomorrow will be infrastructure companies,” said Raghu Raghuram, a managing partner at the venture firm and former VMware chief executive officer.

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Casado acknowledges “private valuations are crazy,” but professes not to be worried about an AI bubble. “This stuff is magic,” he said. “The users are real. The demand is real. The GPU usage is real.”