DOJ launches antitrust probe into a16z over board seats at AI companies

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DOJ launches antitrust probe

DOJ examines ties to Databricks and Fivetran

A16z co-founder Ben Horowitz sits on the board of Databricks, while firm partner Martin Casado holds a similar position at Fivetran. The companies help enterprise customers collect, organize and analyze large volumes of data.

Casado also served on the board of dbt Labs, which Fivetran acquired in June. The Justice Department reviewed the transaction for several months but ultimately cleared it without additional conditions.

The separate investigation began around the same time as the merger review and continued after the deal was completed. The agency has not made a final decision, meaning the probe could end without any action against Andreessen Horowitz.

At issue are so-called interlocking directorates. A U.S. law dating back to 1914 restricts the same individuals or companies from serving on the boards of businesses that directly compete with one another.

In previous cases, such conflicts have typically been resolved by representatives stepping down from one of the boards. During the Biden administration, the Justice Department secured similar departures at more than a dozen companies.

A16z manages $90 billion in assets

One notable aspect of the current investigation is that the agency is examining not only the actions of a particular director, but also Andreessen Horowitz’s presence on the boards of competing companies through different partners. The law applies to both individuals and legal entities, although this interpretation could become a point of dispute.

As of January, a16z managed approximately $90 billion in assets. The firm also recently raised a record $15 billion fund for further investments in startups.

A significant share of its capital is being directed toward artificial intelligence. A16z’s portfolio includes voice AI developer ElevenLabs, OpenAI and other major companies. The firm is also an investor in SpaceX.

Meanwhile, the political influence of the AI industry in the U.S. continues to grow. Companies and affiliated groups are increasing spending to support candidates with competing positions on AI regulation ahead of the November midterm elections.

One example is a New York congressional primary, where funding from groups linked to the AI sector has already become a notable factor in the campaign. It illustrates how disagreements over regulating the technology are increasingly spilling directly into electoral politics.

Public distrust of artificial intelligence is also growing in the U.S. amid concerns over safety, jobs and pressure on local infrastructure.

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