Rackhouse VC’s $45M Fund II underscores room to run for early-stage AI
It turns out there’s more to AI than OpenAI.
Billions of venture capital dollars—bolstered by a solid secondaries market driven by unprecedented numbers of employee tender offers—have poured into top artificial intelligence startups. Those operators, among them Anthropic and Elon Musk’s xAI, may by now be startups in name only. They’ve amassed thousands of employees and millions of servers, their cash reserves rival publicly traded tech giants, and their fundraises are routinely oversubscribed.
That top-heavy sector concentration, however, may be just what AI-focused Rackhouse Venture Capital was built for. On Tuesday, the San Francisco-based firm closed its second early-stage venture vehicle on $45 million.