Lux Capital’s $1.5B Fund Proves VC Still Loves Wars and AI
Lux Capital just smashed its fundraising record—even as the rest of venture capital slumped into a 10-year trough. The firm has closed a $1.5 billion ninth fund, its largest in history, now managing $7 billion in total assets. This comes as 2025 marks a 10-year low in new U.S. VC funds, per PitchBook.
Lux’s strategy hinges on early bets in defense tech and AI. Pre-geopolitical tensions, the firm backed Anduril ($30.5B valuation) and Applied Intuition ($15B valuation), both securing Pentagon contracts.
In AI, pre-ChatGPT, Lux invested in Hugging Face, Runway AI, and MosaicML (acquired by Databricks for $1.3B in 2023). These exits—including Auris Health’s $6B sale to Johnson & Johnson—underscore Lux’s thesis of ‘invest early, win big.’
The firm’s focus aligns with government spending priorities, not just market whims. Defense and AI sectors have seen sustained federal investment, creating a structural tailwind for Lux’s portfolio.
Yet its success contrasts sharply with broader VC struggles, where fund formation has dwindled despite lingering tech hype cycles.
