AI Fund is a Palo Alto-based venture studio founded by renowned AI researcher and entrepreneur Andrew Ng. The firm operates differently from traditional VC firms by partnering with founders from day zero to co-create companies focused on transformative artificial intelligence solutions. Built on the belief that AI can solve real-world problems across industries, AI Fund helps accelerate the journey from idea to product to scale by embedding deep AI expertise, operational support, and world-class talent. Alongside Ng, the fund is led by Partner Warren Packard and a seasoned team of technologists, investors, and company builders.
AI Fund focuses on 0-to-1 AI startups, partnering with entrepreneurs to build companies at the application and software infrastructure layers of the AI stack.
Its thesis centers on the use of foundation models to develop real-world AI-powered solutions across diverse industries such as healthcare, financial services, logistics, renewable energy, education, developer tools, and the future of work.
The studio backs and co-builds companies that leverage emerging technologies including agentic AI, multi-modal models, and advanced reasoning systems.
In May 2025, AI Fund announced the close of its second fund - AI Fund II - at approximately $190 million. This new capital follows its initial $175 million fund and strengthens its ability to co-found AI companies from the ground up.
Limited partners in Fund II include a global roster of institutional backers and corporates such as The AES Corporation, HP Inc., Mitsui & Co., Mitsubishi Corporation, QBE, and TELUS Global Ventures, along with repeat support from Sequoia Capital and NEA.
Fund II continues to support AI Fund’s hands-on venture studio model, which is built to de-risk early-stage AI startups by validating product-market fit, assembling technical and executive teams, and providing access to domain-specific expertise.
Rather than placing a wide array of passive bets, AI Fund operates like a co-founder, collaborating deeply with entrepreneurs from ideation to launch and scale. The fund is designed to create category-defining companies in emerging areas of AI while streamlining the company-building process.
Leadership
AI Fund’s edge lies in its hybrid structure: equal parts studio, incubator, and venture investor. The team brings together AI researchers, startup operators, and talent acquisition experts to support every aspect of company creation.
Andrew Ng’s influence as a global thought leader in AI gives the fund exceptional credibility and access to talent, academic research, and technical innovation. This unique positioning allows the studio to move quickly on cutting-edge opportunities while providing long-term, hands-on support to its portfolio.
Notable Investments
While many of its portfolio companies are built in stealth or launched directly from the studio, AI Fund’s ventures span a wide range of sectors and include startups focused on financial automation, renewable energy optimization, AI-powered logistics, next-gen developer tools, and personalized education platforms.
Each startup reflects the firm’s focus on deploying foundational AI in high-impact, scalable ways.
Notable Exits
As a venture studio still early in its lifecycle, AI Fund has not yet announced major exits, but several of its portfolio companies have raised follow-on rounds and formed notable partnerships, signaling strong traction across multiple verticals.
