The US Justice Department is investigating venture capital firm Andreessen Horowitz over potential antitrust violations, focusing on its partners' dual roles on the boards of competing AI companies Databricks and Fivetran. According to Bloomberg, the probe centers on whether these roles violate a 1914 law prohibiting interlocking directorates, which bars individuals from serving on the leadership boards of two directly competing firms. The law aims to prevent the exchange of sensitive information that could weaken competition. Andreessen Horowitz, which manages about $90 billion in assets, holds stakes in AI companies like OpenAI and has ties to the second Trump administration. The firm's cofounder, Ben Horowitz, sits on the Databricks board, while partner Martin Casado serves on the Fivetran board. Casado also previously sat on the board of dbt Labs, which Fivetran acquired in June. The DOJ reviewed that merger for months before approving it without conditions. The nearly year-old probe began around the same time and is still ongoing. These cases typically end with directors stepping down from one of the boards, though under the Biden administration, the DOJ forced executives to resign in about a dozen cases. What makes this case unique is that the probe targets the firm itself, not just individuals, due to several directors holding board seats at competing companies. The firm's ties to the second Trump administration add another layer, as Andreessen Horowitz has aligned itself closely with the White House and, according to Bloomberg, successfully pushed to roll back many AI safety rules that benefit its own portfolio. Horowitz and cofounder Marc Andreessen donated millions to a pro-Trump group in 2024. The probe highlights concerns over potential conflicts of interest and the firm's influence in shaping regulatory policies affecting AI development.
Source: thedecoder
