Accel Raises $5 Billion to Expand AI Investments

Venture capital firm Accel has raised $5 billion to expand its investments in artificial intelligence startups, reports Bloomberg. The firm will allocate $4 billion to its fifth Leaders Fund, targeting late-stage startups globally, and $650 million to a sidecar fund that allows it to increase exposure to select portfolio companies.

According to partner Matt Weigand, Accel plans to make 20 to 25 investments from the new growth fund, with an average check size of about $200 million. The firm expects to ramp up its pace of investing, particularly in AI-driven businesses at the intersection of software and hardware, including robotics, defense technology, and AI data center infrastructure.

Accel’s recent portfolio includes major AI companies such as Anthropic and Cursor. The firm first invested in Cursor when it was valued at $9.9 billion, and the startup has since been in talks to raise funds at a valuation near $50 billion. Accel also backed Anthropic last year, whose valuation has since more than doubled.

The new funds raise Accel’s total assets under management from $31 billion as of last year and continue its focus on large-scale AI investments amid growing demand for capital-intensive AI development.