Bloomberg ran a piece on Andreessen Horowitz's AI infrastructure fund. They just committed another $1.7 billion to the sector. The focus is on developer tools and backend systems rather than just chips and data centers. The portfolio is seeing big valuation jumps. AI coding startup Cursor is now valued at $29.3 billion, up from $400 million in 2024. They also saw recent exits like Stripe buying Metronome for $1 billion, plus acquisitions by Salesforce and Meta. Martin Casado, who runs the fund, admitted private valuations are getting crazy. They backed Mira Murati's new startup at a $10 billion valuation before it had a product. Despite the high prices, Casado argues the demand for GPU usage is real and supports the spending.