NextFin News - In a move that underscores the intensifying concentration of capital within the upper echelons of the venture capital industry, Thrive Capital announced on Tuesday, February 17, 2026, that it has raised $10 billion for its latest vehicle, Thrive X. This fund marks the largest in the firm’s 17-year history, nearly doubling the size of its previous flagship raise. According to a statement released by the New York-based firm, the fund was significantly oversubscribed, reflecting robust appetite from limited partners for exposure to the firm’s high-conviction investment strategy.
The capital allocation for Thrive X is bifurcated to address the full lifecycle of innovation: $1 billion is designated for early-stage ventures, while the remaining $9 billion is dedicated to growth-stage opportunities. This strategic weighting toward growth reflects the firm’s need to defend and expand its positions in some of the world’s most valuable private companies. Joshua Kushner, the founder of Thrive Capital, noted in a recent interview that the potential scale of winners in the artificial intelligence (AI) sector remains vastly underestimated by the broader market. Kushner emphasized that the firm intends to maintain its signature approach of focusing on a small number of founders, demanding deep alignment with long-term missions.
The timing of this raise is particularly significant given the current trajectory of Thrive’s existing portfolio. The firm has been a pivotal backer of OpenAI, SpaceX, and Stripe—entities that have seen their valuations soar over the past 24 months. SpaceX, for instance, reached a staggering $1.25 trillion valuation following its strategic integration with xAI, while OpenAI continues to dominate the generative AI landscape. According to TechCrunch, the massive scale of Thrive X suggests the firm is preparing for a series of high-stakes liquidity events or follow-on rounds as these "decacorns" approach potential public market debuts under the favorable regulatory environment of U.S. President Trump’s administration.
From an analytical perspective, the $10 billion raise represents more than just a successful fundraising cycle; it signals a fundamental shift in the venture capital power structure. By allocating 90% of the fund to growth-stage investments, Kushner is pivoting Thrive from a traditional venture model toward a hybrid private equity-venture powerhouse. This "barbell" strategy—seeding the next generation with $1 billion while protecting the winners with $9 billion—is a direct response to the capital-intensive nature of modern AI and deep-tech companies. In 2025, the cost of training frontier AI models and scaling satellite constellations reached unprecedented levels, requiring investors to have deeper pockets to avoid dilution.
Furthermore, the success of Thrive X highlights the "founder-centric" premium that Kushner has cultivated. Unlike mega-funds like SoftBank’s Vision Fund, which historically sprayed capital across hundreds of companies, Thrive has maintained a concentrated portfolio. To date, the firm has incubated 12 companies, six of which have achieved unicorn status. This high hit rate has built a level of trust with institutional investors that allows Thrive to command multi-billion-dollar checks even in a volatile macroeconomic climate. The firm’s ability to secure $10 billion also reflects a broader trend where limited partners are consolidating their commitments into a handful of "elite" managers who have demonstrated access to the most exclusive deals, such as OpenAI’s private secondary sales.
Looking ahead, the deployment of Thrive X will likely accelerate the valuation arms race in the AI and robotics sectors. With $9 billion in growth capital, Thrive now possesses the dry powder to lead massive late-stage rounds that were previously the sole domain of sovereign wealth funds or global asset managers. As U.S. President Trump continues to emphasize American technological supremacy and deregulation, firms like Thrive are positioned to act as the primary financiers of the nation’s strategic tech infrastructure. The industry should expect Thrive to use this vehicle not just for passive investment, but to actively orchestrate mergers and consolidations among its portfolio companies to create vertically integrated titans in the AI and aerospace industries.
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