Three people familiar with the matter said Sriram Krishnan, a core artificial intelligence advisor to President Trump who left his post in June, is setting up a venture capital fund focused on the AI sector.
Two of the people said the fund is targeting about $500 million and will invest in growth-stage and later-stage companies. Before joining the Trump administration, Krishnan worked at technology companies including Microsoft and Twitter, and later served as a general partner at Andreessen Horowitz (a16z), where he helped the firm open its London office.
During his time at the White House, Krishnan worked under David Sacks, the official overseeing AI and crypto affairs, helping shape the government's AI policy and leading efforts to implement the AI Action Plan released in July 2025. One person familiar with the matter said Krishnan will be the fund's sole general partner.
The fund will focus on U.S.-based AI companies that can strengthen America's technological leadership, with priority given to national security and cybersecurity. Leveraging Krishnan's policy background, the fund will look for companies with potential for public-private partnerships, following an investment approach modeled on the aerospace industry, where companies often work closely with government agencies such as NASA. It is not yet clear which companies the fund intends to back.
Two people familiar with the matter said the fund is still in the preparatory stage, with no set timetable for a formal launch or first close. One of them said the fund plans to begin making investments before the end of the year. Two sources said potential backers include university endowments and other institutional investors.
A $500 million vehicle is a substantial size for a debut fund, but it will compete with other, larger funds focused on mature companies. It is not yet clear whether Krishnan will invite limited partners to participate in co-investments, a strategy that has become increasingly popular as financing rounds grow larger.
The Trump administration has recruited heavily from the private sector for AI and technology roles, most notably Sacks, a venture capitalist and host of the popular podcast All-In. Many officials return to venture firms or technology companies ahead of the November midterm elections, a common departure point for government officials.
Krishnan's new fund is being prepared at a critical moment for the AI industry. Anthropic is expected to go public around November, and its listing could serve as a bellwether for the industry's health amid debate over how to regulate frontier technology.
One person involved in fundraising talks and interested in investing in the fund said Krishnan's combined background as an operator, investor and policymaker makes him highly valuable to technology companies trying to navigate a complex regulatory environment. The person said many institutional investors have proactively asked for more information about Krishnan and the new fund.
After working at several Silicon Valley technology companies, Krishnan joined a16z in 2021, investing in consumer and social startups. Marc Andreessen's welcome post at the time noted that Krishnan had advised companies including Figma and Notion. While at a16z, Krishnan was involved in the firm's $400 million investment in Twitter, part of Elon Musk's $44 billion acquisition of the company in October 2022, and he helped Musk complete the company's restructuring. He later moved to a16z's crypto team and set up the firm's London office in 2023.
Three people familiar with the matter said Krishnan had considered setting up his own fund even before deciding to join the Trump administration. Trump's nomination of Krishnan as a senior AI advisor drew strong protests from far-right commentators including Laura Loomer and Matt Gaetz, who used the appointment to attack U.S. technology visa programs. Krishnan immigrated to the United States from India in 2007 and became a U.S. citizen in 2016. Despite the controversy, his appointment won bipartisan support, with public backing from figures including Elon Musk and Silicon Valley Democratic Representative Ro Khanna.
During Krishnan's time at the White House, the administration took a relatively light-touch approach to AI regulation under Sacks' leadership. The AI Action Plan proposed giving federal authority priority over state AI oversight and encouraging data center construction through permitting reform. Krishnan also traveled with White House delegations to international summits in France, India and the Middle East.
In April, Anthropic released its powerful Mythos large model, prompting the government to adjust its light-touch AI regulatory strategy, and Krishnan left the White House against that backdrop. Cybersecurity-related risks from AI models drew intervention from senior officials including Treasury Secretary Scott Bessent, and the White House introduced a voluntary AI evaluation framework requiring safety testing before models are launched. One person familiar with the matter said Krishnan's new fund will likely build a team with backgrounds in both public policy and Silicon Valley.