The U.S. Justice Department has spent nearly a year investigating Andreessen Horowitz over whether partners at the venture capital firm are improperly serving on the boards of competing artificial intelligence companies.
Summary
- The DOJ is investigating Andreessen Horowitz over board seats held at competing AI companies.
- The probe involves Databricks and Fivetran and has been underway for nearly a year.
- Regulators are examining whether the board roles violate rules against interlocking directorates.
- The DOJ has not decided whether to take enforcement action.
Bloomberg News reported on Aug. 17, citing people familiar with the matter, that the inquiry involves Databricks and Fivetran, two data and AI companies backed by Andreessen Horowitz, with regulators examining the firm’s representation on both boards.
Andreessen Horowitz co-founder Ben Horowitz sits on Databricks’ board, while partner Martin Casado serves as a director at Fivetran. Both companies provide technology used by businesses to collect, organise and analyse large amounts of data, according to the report.
Casado had also served on the board of dbt Labs before Fivetran acquired the company in June. People familiar with the matter told Bloomberg that the Justice Department reviewed the transaction for months after it was announced in October, but ultimately cleared the deal without conditions.
The separate board investigation began around the same period as the merger review and has continued after the acquisition closed, the people said. The Justice Department has not made a final decision on whether to take action, leaving open the possibility that the inquiry could end without enforcement.
Andreessen Horowitz probe focuses on competing board seats
At issue is a provision of the Clayton Act, the 1914 antitrust law that restricts certain cases in which directors or officers simultaneously serve at competing companies. Such arrangements are commonly referred to as interlocking directorates.
During previous enforcement actions, the Justice Department has often resolved concerns by having a director leave one of the competing boards. Under former Assistant Attorney General Jonathan Kanter, the department revived enforcement of the provision and pushed directors at multiple companies to give up board seats.
Ari Emanuel, then chief executive of Endeavor Group Holdings, stepped down from Live Nation Entertainment’s board in 2021. Directors connected to more than 10 other companies also left boards during enforcement actions in 2022 and 2023, according to Bloomberg.
The Andreessen Horowitz investigation involves another question because regulators are examining the venture firm’s representation through more than one partner. Bloomberg reported that the law is written to apply to companies as well as individuals, and several courts have accepted that interpretation.
Andreessen Horowitz could still challenge that reading if the government eventually brings allegations, according to the report. No such decision has been made.
Spokespeople for Databricks and the Justice Department declined to comment to Bloomberg. Andreessen Horowitz and Fivetran did not respond to requests for comment.
Databricks has become one of a16z’s biggest AI holdings
Databricks is one of the most valuable private technology companies in Andreessen Horowitz’s portfolio and remains a potential candidate for an initial public offering.
The company last week announced $5 billion in new funding at a $190 billion valuation. Andreessen Horowitz has backed Databricks since its early years, with Horowitz leading a $14 million investment in the company in 2013, according to Bloomberg.
Years of follow-on investments have left Horowitz sitting on billions of dollars in potential returns tied to Databricks, the report said.
Databricks develops software that companies use to organise, process and analyse business data, including tools used to build AI applications. Fivetran also operates in the enterprise data sector, providing technology that moves and centralises information from databases, applications and other sources.
Andreessen Horowitz’s exposure to AI extends well past the companies involved in the DOJ inquiry. Bloomberg reported that the firm had $90 billion in assets under management as of January and recently raised a $15 billion fund, its largest fundraising haul, to invest across the startup sector.
The firm has put billions of dollars into AI businesses, including coding company Cursor and voice AI developer ElevenLabs. It has also backed OpenAI and holds a major investment in SpaceX, according to the report.
Its investment activity remains significant in crypto as well. crypto.news reported in July that a16z completed 18 deals during the period tracked by CryptoRank, putting it behind Animoca Brands among the most active investors in the dataset.
A few months earlier, the firm’s crypto division launched a $2.2 billion vehicle focused on stablecoins, tokenised assets and blockchain infrastructure. The new crypto fund came as Crunchbase data cited at the time showed AI startups had raised $242 billion during the first quarter of 2026, or roughly 80% of the $300 billion raised globally.
Washington ties have put a16z closer to federal policy
The antitrust investigation has continued while Andreessen Horowitz has developed close connections with Washington during President Donald Trump’s second administration, Bloomberg reported.
Marc Andreessen and Ben Horowitz each donated millions of dollars in 2024 to a group aligned with Trump while he was running for president. Later that year, Horowitz also contributed $2.5 million to a super PAC supporting Democratic presidential candidate Kamala Harris.
Andreessen has since taken a role in a federal policy initiative focused on artificial intelligence. The Federal Reserve appointed him in July to co-lead an AI task force studying the technology’s effects on productivity and employment.
The panel also includes Stanford University economist Charles I. Jones and Microsoft executive Asha Sharma. Federal Reserve staff will support the group, while its research and feedback will feed into the central bank’s review of how technological changes can affect economic output and jobs.
Within the Trump administration, Andreessen Horowitz has also become an influential participant in AI policy discussions. Bloomberg reported that the firm successfully pressed the administration to remove several safety guardrails governing the use of artificial intelligence.
Political spending connected to the firm has extended into digital assets. A July review found that Andreessen Horowitz contributed $24 million to Fairshake during the second half of 2025, part of crypto industry spending that left the political action committee and its affiliates with about $193 million on hand in January.
People familiar with the DOJ investigation told Bloomberg that regulators have not reached a final decision on how to proceed, and the inquiry could still close without any action against Andreessen Horowitz.
