News Summary

• Andreessen Horowitz has closed a $1.1bn fund that will invest exclusively in hardware.
• The Machine Age Fund covers the physical layer artificial intelligence runs on, from chips to the buildings that house them.
• The case for it rests on physics rather than market sizing.
• Compute density has risen 28-fold between Nvidia’s H100 generation and its Rubin racks, and a rack that once drew 5 to 10 kilowatts now draws between 100 and 250.
• Within three years, that is expected to reach a megawatt per rack.