New Tool for Winning Deals
Andreessen Horowitz, one of the most active venture capital investors in generative artificial intelligence, has added a new tool to its arsenal for winning deals in hot AI startups. The firm has secured thousands of AI chips, including Nvidia H100 graphics processing units, and is renting them to portfolio companies, according to a person who has discussed the initiative with the firm’s partners.
Expanding GPU Clusters
The firm plans to expand the clusters to include more than 20,000 GPUs, the person said. That’s about the same number Elon Musk says his startup xAI uses to train his Grok large-language model, for instance. Andreessen Horowitz has told startup founders the initiative is called “oxygen.”
Supporting AI Startups
Andreessen Horowitz is amassing over 20,000 GPUs, including Nvidia H100s, to support AI startups through its ‘Oxygen’ initiative. This program offers AI chips to portfolio companies at below-market rates for equity, enhancing a16z’s appeal as a lead investor.
Strategic Advantage
By providing AI chips at below-market rates, Andreessen Horowitz strengthens its position as a lead investor. This initiative not only supports the technological needs of startups but also secures equity, aligning interests for mutual growth and success.
