Khosla Ventures, an early investor in OpenAI, is in discussions to raise up to $5.5 billion across a new group of venture capital funds, according to a Bloomberg report.
If the fundraising reaches that level, it would represent the largest capital raise in the Menlo Park, California-based firm’s approximately two-decade history. The people familiar with the discussions cautioned that the size and structure of the funds could still change before the process is completed.
Khosla Ventures is reportedly considering approximately $1 billion for a seed-stage fund focused on backing companies at their earliest stages of development. A separate venture fund would target roughly $2 billion for early-stage startups that have begun demonstrating product traction, customer demand or other signs of growth.
The firm is also discussing an opportunity fund of approximately $2.5 billion. Opportunity funds generally allow venture firms to make larger investments in more mature portfolio companies or participate in later-stage financing rounds as businesses move closer to potential acquisitions or public listings.
Together, the three proposed vehicles would give Khosla Ventures the ability to invest across a company’s development, from initial formation and product development through later-stage expansion. This structure could also help the firm maintain ownership positions in high-performing companies as they raise progressively larger financing rounds.
The potential $5.5 billion total would be nearly 40% larger than Khosla Ventures’ previous fundraising effort, which closed at approximately $4 billion around 17 months ago. The proposed increase reflects the growing amount of capital required to support companies working in artificial intelligence, advanced computing, robotics and other capital-intensive technology sectors.
Khosla Ventures has been one of the most prominent venture firms investing in artificial intelligence. In addition to its early backing of OpenAI, the firm has invested in companies including Cognition, which develops AI software engineering technology; Sakana AI, a Japan-based AI research company; and Physical Intelligence, which is developing AI systems for robots.
The firm was founded by Vinod Khosla and has built a strategy around investing in companies pursuing technically ambitious products and large markets. Its portfolio spans AI, enterprise software, healthcare, energy, climate technology and other emerging industries.
A fundraising of this size would provide Khosla Ventures with substantial capital to continue investing during a period of intense competition for leading AI companies. However, the discussions remain ongoing, and the final amounts raised could differ from the current targets.
A spokesperson for Khosla Ventures declined to comment on the reported fundraising plans.
