TNB Tech Minute: Andreessen Horowitz Launches AI Hardware Fund

**SPEAKER_1** (0:01)
Countless companies invest in AI tools without tying them to tangible business outcomes. Join McKinsey later to learn how leaders rewire their organizations for sustained impact and value.

**Julie Chang** (0:15)
Here's your afternoon TNB Tech Minute for Friday, August 28th. I'm Julie Chang for the Wall Street Journal. We exclusively report that VC firm Andreessen Horowitz raised over a billion dollars for its first dedicated Hardware Infrastructure Fund, dubbed Machine Age. The fund will focus on AI processors, memory chips, networking equipment, data storage, and robotics. Though Andreessen Horowitz previously invested in hardware firms like SpaceX and Anduril, software has always been its main focus. A general partner at the firm said it raised the fund due to growing bottlenecks in AI infrastructure and an influx of founders building in the space.
China's BYD, the world's top EV seller, may have turned a corner with the help of its rapid expansion overseas. BYD has been focusing on exports following an intense price war and slowing demand in the world's largest auto market. Its exports now account for a rising share of total sales volume, especially in Europe and Latin America. BYD's second-quarter net profit rose 30% despite a roughly 3% revenue decline. The company's first-half net profit fell 21% to $1.8 billion, with revenue dropping over 7%.
And Google will adjust how it ranks search results featuring third-party content in Europe to appease antitrust regulators and avoid potential fines. The company in 2024 introduced a policy to hide parts of websites or entire pages in search results if it was determined that parts of the site didn't comply with Google's spam policies. But the European Commission found Google demoted websites from news organizations and other publishers containing commercial partner content, which could be a breach of the Digital Markets Act. Google said starting August 30th, its site reputation policy enforcement will no longer impact search results for users in all EU member states as well as Iceland, Liechtenstein, and Norway. News Corp, owner of Dow Jones Newswire and the Journal, has a commercial agreement to supply content on Google platforms.
And that's your TNB Tech Minutes this week. Tune in Monday morning for another quick tech update.

**SPEAKER_1** (2:27)
True AI value comes from rethinking workflows, not just layering on tech. Here's Dan Swan, Senior Partner at McKinsey.

**Dan Swan** (2:34)
When we talk about rewiring, we're more talking about getting into the chassis of the organization. And that means, yes, there's technology to it. But how are you redesigning the organization or the capabilities of the people that are actually doing the work and linking that to the technology? So for us, the technology, yes, is critically important, but these other pieces are 70, 80 percent of the work to get that right.