Bain Capital Ventures raises $1.6 billion fund for next phase of AI

Bain Capital Ventures has raised $1.6 billion for a new fund targeting early-stage startups building the next generation of artificial intelligence, including infrastructure, security, services and applications in the physical world.

The fund is modestly larger than the firm’s previous $1.4 billion vehicle. Bain Capital Ventures expects those sectors to remain important even after the industry reaches artificial general intelligence, or AGI, which Bloomberg described as the point at which AI can improve itself and outperform humans at many tasks.

The firm is raising money at a delicate point for the industry. Anthropic and OpenAI have discussed slowing development after high-profile cybersecurity incidents, while investors are increasingly focused on the cost of computing and the risks created by autonomous systems.

Enrique Salem, a Bain Capital Ventures partner, said the industry should keep moving forward while improving security controls. “It’s an exciting, brave new world, and we need to keep moving forward, eyes wide open,” Salem said.

The firm’s portfolio includes data-center developer Crusoe and scientific-discovery startup Periodic Labs, which raised a $300 million seed round. Bain Capital Ventures also helps companies connect with credit and private-equity capital as computing becomes more expensive.

Partner Slater Stich said startups should avoid giving up excessive ownership simply to buy processing power. The firm plans to invest in about 30 to 40 companies over two to three years, focusing on early risk capital before companies can use later-stage, non-dilutive financing.