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- Venture capital firm Andreessen Horowitz has purchased and stashed thousands of GPUs, including many of Nvidia’s (NASDAQ:NVDA) H100 processors, in an effort to win deals for AI startups, The Information reported.
- The venture capital firm, which has $42B in assets under management, has rented out the GPUs to many of its portfolio companies, the news outlet added, citing a person who has discussed the initiative with the firm’s partners. It is unclear if A16z has purchased the GPUs outright or has rented them.
- Eventually, Andreessen Horowitz, also known as A16z, plans to expand the venture — which it describes as “oxygen”— to more than 20,000 GPUs, the person added.
- Neither Andreessen Horowitz nor Nvidia responded to a request for comment from Seeking Alpha.
- It is not the first time that GPUs have been used in a non-traditional way as the artificial intelligence boom continues. Last August, CoreWeave, a cloud service startup backed by Nvidia, raised $2.3B in debt with Nvidia’s H100 GPUs used as collateral.
- In May, it was reported that CoreWeave was preparing for an initial public offering sometime in 2025.