The Justice Department is investigating venture capital firm Andreessen Horowitz to determine whether its investment partners are improperly serving on the boards of competing artificial intelligence companies, according to a new report.
Databricks Inc. and Fivetran Inc., the two technology companies backed by Andreessen Horowitz, are under scrutiny by the DOJ, according to a Bloomberg report published Monday. Andreessen Horowitz co-founder Ben Horowitz, who serves on the board of Databricks, is known in political circles for donating millions to the campaigns of both President Donald Trump and former Democratic presidential candidate Kamala Harris.
Martin Casado, a board member of Fivetran, is the other individual reportedly being probed. Resolving such investigations typically requires that directors step down from one of the competing boards, according to the outlet, meaning either Casado or Horowitz could be forced to resign. The Justice Department hasn’t made any final decisions on how to proceed with the investigation, which could end with no action, according to the report.
The Washington Examiner reached out to Andreessen Horowitz and the Justice Department for comment.
Since Trump won a second term, Andreessen Horowitz has closely aligned itself with his administration as the White House touts its ambition to win the global AI race.
In June, Secretary of War Pete Hegseth appointed Andreessen Horowitz owner Marc Andreessen to sit on the Pentagon’s Defense Policy Board, among other figures. The venture capital company has expressed optimism for a favorable outcome for AI development that augments workers, instead of substituting them, with general partner David George telling the Washington Post earlier this year he’s skeptical of narratives perpetuating the “AI job apocalypse.”
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His stance comes as Washington is seeking an upper edge against AI competitors such as China, and is preparing to tell 35 countries they must pick sides in the battle, warning they will be excluded from a U.S.-led AI “Pax Silica” coalition if they also sign up for Beijing’s rival framework, according to Reuters.
A U.S. official told the outlet last week that the letter is aimed at communicating “you can’t have it both ways,” saying, “it’s difficult to see how a country can credibly position themselves as trusted partners in one technology ecosystem while simultaneously signing up for an initiative designed by China to advance a competing vision for AI.”