Andreessen Horowitz (a16z) has just announced a new $15 billion funding round, further cementing its position as a leading force in venture capital. This influx represents over 18% of all U.S. venture funding in 2025, bringing the firm’s total assets under management to over $90 billion — rivaling Sequoia Capital as one of the largest in the world. This rapid growth is driven, in part, by strategic partnerships with sovereign wealth funds, including those from Saudi Arabia.
Global Expansion and Diversified Investments
a16z has grown into a global operation, with hundreds of employees across five offices worldwide and a presence on six continents. The firm recently opened its first Asia office in Seoul, focusing on cryptocurrency investments. The new capital will be allocated across five funds: growth investments ($6.75 billion), apps and infrastructure ($1.7 billion each), “American Dynamism” ($1.176 billion), biotech and healthcare ($700 million), and other venture strategies ($3 billion).
Opaque Funding and Saudi Connections
The origins of this funding remain largely undisclosed. a16z has historically avoided transparency regarding its limited partners and capital return ratios. CalPERS invested $400 million in 2023, marking the first time a major California pension fund backed a16z, likely due to institutional transparency requirements clashing with the firm’s preference for opacity. Sanabil Investments, Saudi Arabia’s venture arm, also lists a16z among its portfolio holdings.
The Saudi connection is overt: in 2023, a16z co-founders appeared with WeWork’s Adam Neumann at a Saudi-backed conference to discuss a $350 million investment in his new venture, Flow. Horowitz even praised Saudi Arabia as a “startup country,” acknowledging the influence of its leadership.
Political Alignment and National Security Focus
Marc Andreessen has actively engaged with the Trump administration, spending time at Mar-a-Lago to influence tech, business, and economic policy. He served as an “unpaid intern” at Elon Musk’s Department of Government Efficiency, vetting candidates for key government roles, including defense and intelligence agencies. Scott Kupor, a16z’s first employee, was appointed director of the U.S. Office of Personnel Management.
This political alignment complements a16z’s “American Dynamism” strategy, which invests heavily in defense, aerospace, public safety, housing, education, and manufacturing. The portfolio includes companies like Anduril (autonomous defense systems), Shield AI (military drones), and Castelion (hypersonic missiles), aligning directly with Defense Department priorities. The firm recognizes the need for reindustrialization and reshoring critical manufacturing, citing the U.S.’s limited missile stockpile in a potential conflict with China.
High-Risk, High-Reward AI Bets
a16z is also making substantial bets on artificial intelligence, investing across the entire AI stack: infrastructure (Databricks), foundation models (Mistral AI, OpenAI, xAI), and applications (Character.AI). While risky, this strategy has yielded significant returns in the past, including a $25 million investment in Coinbase that grew to an $86 billion valuation and successful exits like Airbnb and Slack. The firm boasts 115 unicorns, 35 IPOs, and 241 acquisitions, though crypto investments remain less transparent.
As Ben Horowitz stated, “as the American leader in Venture Capital, the fate of new technology in the United States rests partly on our shoulders.” Andreessen Horowitz has successfully raised capital to fund a vision of American technological dominance supported by global partnerships, political influence, and strategic investments in critical industries.
