Kleiner Perkins, the storied U.S. venture firm founded in 1972, has raised $3.5 billion across two funds, marking a significant boost from its previous fundraise of $2 billion less than two years ago.

The influx is partly attributed to the firm’s early investments in fast-growing AI startups like Together AI and Harvey, as well as established giants such as Anthropic and SpaceX, both expected to IPO this year. Kleiner Perkins also reaped substantial returns from its earlier investment in design software company Figma, which went public last year.

With a lean team of five partners, the firm has faced some leadership changes recently, with Ev Randle leaving for Benchmark and Annie Case transitioning to an advisory role. Despite this, Kleiner Perkins remains a force to be reckoned with, joining other mega-raisers like Thrive Capital ($10 billion) and General Catalyst, which is aiming for similar amounts.

Meanwhile, Founders Fund has closed $6 billion for its fourth growth vehicle, according to SEC filings. This trend in massive fund raises suggests that despite a challenging exit market, early-stage investments continue to hold promise, especially in tech-heavy sectors like AI.

Will this capital injection finally tip the scales in favour of practical AI applications or will it just fuel more hype? Only time – and perhaps a few more successful exits – will tell.