Disruptive Raises $10B Fund for Big Bets on AI and Defense

Dallas-based investment firm Disruptive announced a $10 billion fund on Tuesday to back at least 10 late-stage companies, with individual checks of up to $1 billion. The firm is targeting capital-intensive sectors, namely AI and defense.

It is one of the largest fundraises of the year so far. The Wall Street Journal reported earlier this month that Disruptive was seeking the money and had already secured at least $7.5 billion in commitments. According to the Dallas Business Journal, the vehicle is the largest venture fund raised in Texas history.

A first blind-pool fund

Technically, this is the firm's first blind-pool fund, meaning investors commit capital without knowing which companies will be backed. Until now, Disruptive raised money through deal-by-deal special purpose vehicles. Even so, it has drawn attention in recent years for investments in chip startup Groq and AI voice-generation startup ElevenLabs. Its earlier bets include Palantir, Airbnb and Spotify.

Disruptive was founded in 2012 by Alex Davis, grandson of billionaire oil magnate Marvin Davis. Bloomberg reported that the firm told its limited partners it has returned more than $6 billion on the roughly $1.9 billion it has invested in startups.

Why it matters

The plan to write checks of up to $1 billion into a small number of companies reflects how much capital top AI and defense businesses now require. A concentrated portfolio of at least 10 companies means the fund is built around a few very large positions rather than broad diversification.

The move also shows how a firm that built its record through single-deal vehicles is shifting to a conventional pooled structure, giving it committed capital it can deploy quickly into late-stage rounds.