The DOJ is looking into Andreessen Horowitz regarding rival board positions.

      The US Justice Department is conducting an inquiry into Andreessen Horowitz. The focus is on whether the partners at the venture capital firm are inappropriately serving on the boards of competing artificial intelligence companies. Bloomberg reported this investigation on Monday, citing sources familiar with the situation.

      According to these sources, the investigation has been ongoing for nearly a year. Monday’s article marks the first public disclosure of the Andreessen Horowitz DOJ investigation. They also indicated that the department has not reached a final decision, and the case may conclude without any action taken.

      The companies and board positions involved

      Two portfolio companies are at the center of the investigation. Both offer software that assists businesses in collecting, organizing, and analyzing large sets of data.

      Ben Horowitz, a co-founder of Andreessen Horowitz, is on the board of Databricks, while Martin Casado, a partner at the firm, is on the board of Fivetran. The firm is an investor in both companies.

      Casado also held a board position at dbt Labs, which Fivetran acquired in June. The Justice Department reviewed this acquisition for several months after it was announced in October, but ultimately cleared it without conditions.

      The investigation into board memberships began around the same time as the merger review and continued after the deal was completed.

      Legal context

      The legal provision in question is Section 8 of the Clayton Act, enacted by Congress in 1914 and now codified at 15 U.S.C. 19. Antitrust lawyers refer to the practice it addresses as an interlocking directorate.

      This provision states that "no person shall, at the same time, serve as a director or officer in any two corporations" that compete, where such an arrangement would violate antitrust laws.

      There are exceptions specified in the statute, including for banks and companies that fall below certain capital and profit thresholds.

      Bloomberg noted that such investigations usually result in a director relinquishing one of the board positions.

      Responses from the parties involved

      Spokespeople for Databricks and the Justice Department declined to comment, according to Bloomberg. Representatives for Andreessen Horowitz and Fivetran did not respond to requests for comments.

      A spokesperson for the Justice Department later issued a statement neither confirming nor denying the investigation, as reported by Forbes.

      “We can confirm that the DOJ under the Trump Administration will continue to prioritize affordability for all Americans across our economy,” the spokesperson stated, a remark that was also received by the Washington Examiner.

      Previous cases under the same statute

      Bloomberg described the inquiry as part of a continued enforcement initiative from the Biden administration. Prior to this, the department had seldom applied the 1914 provision.

      Jonathan Kanter, who led the antitrust division at the time, encouraged directors to vacate several board positions. For instance, Ari Emanuel, former CEO of Endeavor Group Holdings, resigned from the board of Live Nation Entertainment in 2021, while board members from over ten other companies stepped down during 2022 and 2023.

      A distinction involving businesses and individuals

      Bloomberg pointed out that this case differs from prior ones as it involves multiple individual directors, making the firm central to the inquiry rather than focusing on an individual.

      The statute encompasses both entities and individuals, and several courts have interpreted it this way, according to Bloomberg. This interpretation may provide the firm with grounds to challenge any allegations presented by the government.

      The firm's relationship with Washington

      Andreessen Horowitz has closely aligned itself with the second Trump administration, according to Bloomberg. The firm has emerged as a significant voice on federal AI policy.

      Both Horowitz and co-founder Marc Andreessen contributed millions in 2024 to a group supporting Trump's candidacy. Later that year, Horowitz donated $2.5 million to a super PAC backing the Democratic candidate, Kamala Harris. Both amounts were reported by Bloomberg.

      Forbes referenced ProPublica's reporting indicating that Andreessen donated over $5 million to Trump-supporting groups in 2024. It also mentioned a New York Times report from May that detailed the firm and its co-founders contributing a total of $115.5 million ahead of the November midterms, representing the largest contributions from any donor.

      The firm officially endorsed Trump in the 2024 election and Andreessen provided advice to him at his Mar-a-Lago estate prior to the inauguration, stating that he dedicated half his time to this effort.

      Since then, Andreessen has engaged in government advisory roles. Secretary of War Pete Hegseth appointed him to the Pentagon’s Defense Policy Board in June, as reported by the Washington Examiner. Furthermore, The Washington Post noted in July that the Federal Reserve had also enlisted him to advise on AI matters.

      Forbes reported Andreessen's net worth at $1.9 billion on Monday afternoon.

      Forbes characterized the investigation as an unusual instance of the administration scrutinizing a political ally, with Doug Calidas, an AI regulation advocate, commenting