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. According to reports from Bloomberg News, 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. The probe began around the same period as a merger review and has continued after the acquisition closed, with the Justice Department not making a final decision on whether to take action. Monday's story marks the first public account of the Andreessen Horowitz DOJ probe, as reported by Bloomberg News, citing people familiar with the matter who put the investigation at nearly a year old. Sources familiar with the matter told Bloomberg that the DOJ has not made any final determinations regarding the investigation into both companies, and it is possible that no action may be taken.
As reported by Bloomberg News, 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. Casado had also served on the board of dbt Labs before Fivetran acquired the company in June, with the Justice Department reviewing the transaction for months after it was announced in October but ultimately clearing the deal unconditionally without conditions. Databricks is one of the most valuable privately held technology companies in the world, according to Bloomberg, highlighting the significance of the investigation. The statute covers entities as well as people, and a handful of courts have read it that way, according to Bloomberg News, which could give the firm room to contest any allegation the government brings. Federal antitrust law prohibits what's known as "interlocking directorates," which means having the same person on multiple competing boards, with the provision specifically stating "No person shall, at the same time, serve as a director or officer in any two corporations" that are engaged in commerce with each other or are competitors that could violate antitrust laws if they worked with each other.
At issue is a provision of the Clayton Act, the 1914 antitrust law that restricts directors or officers from simultaneously serving at competing companies. According to Bloomberg News, the law is written to apply to companies as well as individuals, and several courts have accepted that interpretation. The provision at issue is Section 8 of the Clayton Act, which says that "no person shall, at the same time, serve as a director or officer in any two corporations" that compete, where an agreement between them would breach antitrust law. The statute carves out exceptions, including banks and companies below a threshold for total capital and profits. During previous enforcement actions, the Justice Department has often resolved concerns by having a director leave one of the competing boards, with directors connected to more than 10 other companies leaving boards during enforcement actions in 2022 and 2023. The DOJ revived aggressive enforcement of this act during the Biden administration when Antitrust Division chief Jonathan Kanter told directors at more than a dozen boards to resign or abandon planned appointments. Since the text of the law only specifies no "person" can serve on multiple competing boards, Bloomberg notes it's possible Andreessen Horowitz could try to challenge any penalty it could face, arguing the law doesn't apply here since multiple people are serving on the boards, even if they're from the same firm.
As reported by Bloomberg News, Andreessen Horowitz currently has approximately $90 billion in assets under management as of January 2026. The Silicon Valley-based firm is invested in major companies such as Anchorage Digital, Anduril, Databricks, Eleven Labs and Flexport, among others, according to its website. Earlier this year, the firm raised more than $15 billion with new funds including American Dynamism, Apps, Bio and Health, Infrastructure and Growth and other venture strategies, raising more than 18% of all venture capital dollars allocated to the U.S. in 2025, as the company stated in a press release. The firm managed $90 billion in assets as of January and has since closed a $15 billion fund, the largest in its history. Resolving such investigations typically requires that directors step down from one of the competing boards, as noted by Bloomberg's report.
According to Bloomberg News, the antitrust investigation has continued while Andreessen Horowitz has developed close connections with Washington during President Donald Trump's second administration. Horowitz and co-founder Marc Andreessen each gave millions of dollars in 2024 to a group supporting Trump's candidacy, with Horowitz contributing $2.5 million to a super PAC supporting Democratic presidential candidate Kamala Harris later that year. Andreessen has since taken government advisory roles, being appointed in June to the Pentagon's Defense Policy Board and advising the Federal Reserve on AI. The firm endorsed Trump in the 2024 election and Andreessen advised him at his Mar-a-Lago estate, with Forbes characterizing the investigation as a rare case of the administration examining a political ally. Andreessen has been a standout Trump donor and ally, getting appointed to multiple advisory boards through the administration and saying he spent "half" his time after the 2024 election advising Trump at the president's Mar-a-Lago estate. The firm and its cofounders are so far the biggest donors in the November midterms, with $115.5 million in donations, according to The New York Times, with Andreessen and Horowitz giving a combined $12 million this election cycle to Trump's MAGA Inc. super PAC. The firm is "probably the most powerful single company that I've seen in recent years" on AI policy, according to pro-AI regulation lobbyist Doug Calidas, with the firm serving as the Trump White House's "first outside call" on AI issues.
