Venture capital giant pivots focus to emerging AI and defense industries amid changing market dynamics
Andreessen Horowitz (a16z), one of Silicon Valley’s most prominent venture capital firms, is reportedly preparing to raise around $10 billion for a series of new funds aimed at artificial intelligence and defense technology, marking a significant strategic shift away from its once-flagship focus on crypto investments.
According to industry reports, the firm plans to allocate $6 billion for late-stage investments, $1.5 billion each for AI applications and AI infrastructure, and over $1 billion for a new defense and manufacturing fund. No dedicated crypto fund is included in the upcoming plans — a notable move from a firm that has been instrumental in shaping the digital asset ecosystem.
a16z has previously backed major blockchain projects such as Coinbase, Uniswap, and MakerDAO, and its a16z Crypto division has long been viewed as one of the most influential players driving decentralized finance adoption.
Strategic refocus despite ongoing optimism for blockchain
The timing of this decision comes shortly after the firm published its latest State of Crypto report, highlighting growing global demand for digital assets and the mainstream acceptance of stablecoins. Yet, the firm’s capital strategy indicates a clear preference for AI and defense—two sectors currently seeing record investment inflows.
“The venture capital landscape has entered a new cycle where AI and national security are taking precedence over speculative sectors,” said Jonathan Miller, a venture market analyst at TechScope Research. “Crypto remains important, but capital is following areas of immediate industrial transformation.”
Selective crypto exposure continues
Despite the absence of a new fund, a16z remains active in the blockchain space. The firm recently invested $50 million in Jito, a Solana-based liquid staking protocol, and $55 million in LayerZero, a cross-chain messaging network.
Analysts suggest the company is re-positioning itself for a long-term technology convergence, where AI, blockchain, and defense innovation intersect. While the crypto market continues to mature, investor confidence is clearly migrating toward sectors promising faster scalability and tangible real-world integration.
Disclaimer
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