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Andreessen Horowitz Raises $15 Billion, Doubles Down on AI and Defense Startups

Venture capital firm Andreessen Horowitz, also known as a16z, said on Friday it has raised more than $15 billion across five new funds, less than two years after its previous fundraising round, underscoring sustained investor appetite for technology despite a broader slowdown in venture capital fundraising.

The firm said it secured $6.75 billion for a growth fund focused on scaling startups, $1.7 billion for an artificial intelligence infrastructure fund, and $1.12 billion for a fund targeting national priorities such as defense, housing and supply chains. The remaining capital was spread across two additional funds, the firm said.

Venture capital fundraising has remained difficult due to weak exit activity in recent years. According to PitchBook data, only $118.6 billion in new commitments were closed last year, nearly $100 billion less than in 2024, while the number of new funds closed in 2025 was the lowest in a decade. Against that backdrop, a16z’s haul highlights how the largest and most established VC firms continue to attract capital from limited partners.

AI and defense technology have emerged as key bright spots, as the United States intensifies efforts to maintain its technological edge amid growing competition from China. Marc Andreessen, a co-founder of the firm, has been a prominent supporter of U.S. President Donald Trump and an adviser to the administration’s Department of Government Efficiency.

“The technology landscape that we will be investing into is intensely competitive with China,” said Ben Horowitz, co-founder and general partner at a16z. “At this moment of profound technological opportunity, it is fundamentally important for humanity that America wins.”

Reuters reported last April that a16z was seeking to raise a roughly $20 billion megafund focused on AI-driven growth-stage investments. The firm is one of Silicon Valley’s most influential venture capital players and has backed major technology companies including Facebook, Instagram, Coinbase and Lyft.

In its previous major fundraising round in April 2024, a16z raised $7.2 billion across five funds. The firm now manages more than $90 billion in assets across all its investment vehicles.

Replit Raises $250 Million at $3 Billion Valuation as AI Code-Gen Market Heats Up

Replit, the San Francisco-based AI software development platform, announced Wednesday it has raised $250 million in new funding, pushing its valuation to $3 billion. The round underscores booming investor interest in AI code-generation startups, which aim to help both developers and non-technical teams write software.

The financing was led by Prysm Capital, with participation from Google’s AI Futures Fund and Amex Ventures. Existing investors including Andreessen Horowitz (a16z) and Coatue also increased their commitments.

Replit’s growth has been dramatic: the company was valued at just over $1 billion in 2023 after raising $97.4 million. Its annualized revenue surged from $2.8 million to $150 million in under a year, reflecting accelerating adoption.

Competitive Landscape

The code-gen sector is attracting major capital. Rival Cognition raised $400 million at a $10.2 billion valuation earlier this week, while Cursor raised $900 million at a $10 billion valuation in May.

Replit CEO Amjad Masad said what sets Replit apart is its “vibe-coding” tools aimed at non-technical enterprise users, enabling departments from sales and HR to operations to accelerate product development.

Customers and New Tools

Companies such as Duolingo and Zillow already use Replit to build applications. On Wednesday, the company also launched Agent 3, an autonomous AI tool designed to test and fix code, as well as build custom agents and workflows.

Strategic Focus

Replit plans to invest the new capital in R&D, sales, and marketing, as it competes with well-funded rivals in the fast-evolving AI software development space.

Databricks Hits $100 Billion Valuation with $1 Billion Raise, Projects $4 Billion Revenue

Databricks, the San Francisco-based data analytics and AI firm, announced on Monday that it has closed a $1 billion Series K funding round at a $100 billion valuation, cementing its position as one of the world’s most valuable private companies.

The round was co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management. The fresh capital will fuel Databricks’ AI strategy, supporting new product launches, acquisitions, and advanced research.

The company revealed it is now on track to hit $4 billion in annualized revenue, with AI-related products contributing $1 billion. Its customer base has grown to around 15,000 clients, including Shell and Rivian, while its Lakebase data warehouse has already reached tens of millions in annualized revenue just months after launch.

CEO Ali Ghodsi said Databricks will remain cash-flow positive, keeping the option of an IPO open but without a fixed timeline. The company is also investing in Agent Bricks, its new AI platform for building autonomous systems, and recently acquired Tecton, a machine learning startup.

With net revenue retention above 140%, over 650 customers spending more than $1 million annually, and positive free cash flow, Databricks is positioning itself as a leader in the AI and big data race—and a likely candidate for one of the most anticipated IPOs in the sector.