The U.S. Department of Justice has launched an antitrust investigation into venture capital powerhouse Andreessen Horowitz as officials examine whether leaders at the firm improperly hold board seats at competing artificial intelligence companies, according to a report.
The investigation centers on two AI companies that are both backed by Andreessen Horowitz and have board members holding top positions at the venture capital firm, Bloomberg reported Monday, citing people familiar with the matter.
Andreessen Horowitz co-founder Ben Horowitz currently serves on the board of Databricks, which is described as one of the world’s most valuable private technology companies.
Meanwhile, Andreessen Horowitz partner Martin Casado sits on the board of Fivetran, a competing company that also helps businesses gather and organize data, according to Bloomberg.
The Justice Department is reportedly investigating whether the arrangement violates Section 8 of the Clayton Act.
With certain exceptions, Section 8 prohibits an individual from serving as a director at two competing corporations if each company has more than $10 million in capital, surplus and undivided profits. An exception applies if the competitive sales of either company are less than $1 million, according to the Federal Register.
Previous investigations involving alleged Section 8 violations have resulted in directors stepping down from one of the competing companies’ boards. Seven directors resigned from boards following such investigations in 2022, according to Crypto Briefing.
While the investigation into Andreessen Horowitz is only now becoming public, it has reportedly been underway for approximately a year.
Bloomberg reported that the probe began around the same time regulators started examining Fivetran’s acquisition of dbt Labs.
Casado had also served on the board of dbt Labs before that transaction.
Fivetran’s acquisition of dbt Labs ultimately went through, but the federal investigation into Andreessen Horowitz has continued, according to the report.
The existence of an investigation does not mean the Justice Department will ultimately take enforcement action against the venture capital firm. Bloomberg reported that the probe could conclude without any action being taken.
The Justice Department declined to confirm whether an investigation is underway when contacted by the Daily Caller.
A DOJ spokesperson said the department does not “confirm or deny nor otherwise comment on the status of an investigation.”
The department did, however, provide a broader statement about the Trump administration’s enforcement priorities.
“We can affirm that the DOJ under the Trump administration will continue to prioritize affordability for all Americans across our economy,” the department said.
The reported investigation puts scrutiny on the board positions held by two senior Andreessen Horowitz figures at companies operating in the same industry while receiving backing from the venture capital firm.
For now, the probe remains ongoing, according to Bloomberg, with federal officials examining whether the overlapping board relationships run afoul of federal antitrust law and with no guarantee that the Justice Department will ultimately take action against Andreessen Horowitz.
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