Written by: Emily Birnbaum, Oma Seddiq, Bloomberg
Compiled by: Saoirse, Foresight News
One of the most prestigious venture capital firms in Silicon Valley has become a behind-the-scenes player in shaping Washington's artificial intelligence policy. With Donald Trump's strong support for the industry in this emerging technology sector, the company's influence has become increasingly critical.
According to current and former White House and congressional aides, senior White House officials typically first reach out to a16z when considering measures that might affect tech companies' AI plans.
Their main contact is the company's chief lobbyist Collin McCune in the capital. A former White House official stated that this company, abbreviated as a16z, has veto power over almost all proposals related to AI.
'They are an absolutely powerful lobbying force, possibly the most powerful single entity I've seen in recent years,' stated Doug Calidas, chief lobbyist for Americans for Responsible Innovation. The organization opposes a16z's attempts to weaken state AI-related laws.
The company's rise in Washington is attributed to massive investments in influence, co-founder Marc Andreessen's close relationship with Trump, and a network of partners who have worked at the company and now hold key positions in the government. At the same time, it has cleverly packaged its invested startups as paradigms of free market innovation praised by the Republican-dominated Washington.
a16z's bold and aggressive stance on loosening regulations has reinforced the government's view: that many regulatory constraints imposed on AI by the government could jeopardize the U.S.'s competitiveness in this rapidly developing technological field, and AI is a crucial driver of recent U.S. economic growth. The company is also a key player in the Trump administration's efforts to block states from implementing AI regulatory measures.
Marc Andreessen and his wife, renowned American philanthropist Laura Arrillaga-Andreessen, photographed in April. Photographer: Craig T Fruchtman/Getty Images
White House spokesman Kush Desai stated in a statement that Trump and his advisors 'have always been willing to listen to the opinions of business and tech leaders,' but 'the only special interest guiding this administration's decisions is the best interest of the American people; the only one with veto power over government policies is President Trump.'
Collin McCune also stated in the declaration that Trump is 'the only person in this administration who is formulating AI policy.'
As of January, a16z manages assets totaling $90 billion, making it the largest venture capital firm in Silicon Valley (note: this refers to pure VC business). The company recently completed the largest funding round in history, raising $15 billion and investing billions into emerging AI companies like Cursor and LM Arena. These companies, along with a16z's holdings in major tech firms like OpenAI and Meta, will benefit from the loose regulatory policies it promotes in Washington.
The inflexible stance of this giant has made compromises in AI-related legislation even more difficult, sometimes causing frustration among lobbyists from large tech companies that are also allies in Washington. According to insiders, despite tech giants like Microsoft and Amazon indicating their willingness to compromise on federal AI standards, a16z has directly rejected proposals that would impose significant new regulations on AI development.
a16z's chief legal and policy officer Jai Ramaswamy stated, 'The end result is that big companies start making trade-offs.' Large corporations can mobilize legal and compliance budgets, while 'small companies founded by a few people in a garage simply do not have the ability to make such compromises.'
Many AI skeptics believe that this technology could harm users, replicate biases against vulnerable groups in reality, and replace jobs across various sectors, and therefore should be regulated. Some AI developers even believe that, if left unchecked, AI could lead to the end of the world.
In December last year, there was an attempt to leverage the must-pass defense bill to prevent states from enacting artificial intelligence safety laws, which is a typical manifestation of a16z's influence. Just months earlier, allies in Congress from the tech industry attempted to add similar provisions to Trump’s signature tax bill, but were blocked by Republican governors, MAGA influencers, and child safety advocacy groups.
According to a senior Republican aide, when weighing operations related to the defense bill, a16z's lobbyist Collin McCune was the first person called from outside the government. Collin McCune provided clear support and immediately acted to assist in coordinating with White House AI head David Sacks, House Majority Leader Steve Scalise, and Senate Commerce Committee Chairman Ted Cruz.
This legislative maneuver was unsuccessful, but Trump subsequently used his presidential power to achieve the same goal: signing an executive order to prevent states from enacting regulatory rules to guard against potential harms related to AI. According to a source close to the White House, a16z also assisted the government in drafting the contents of this directive. This executive order echoes a novel proposal promoted by a16z: that states have no authority to regulate the national AI market under the Constitution's 'Dormant Commerce Clause.'
In December last year, Trump signed an executive order limiting the powers of states to regulate AI, which has long been a goal of the tech industry. Photographer: Alex Wong/Getty Images
The company's hard-nosed co-founder Marc Andreessen is at the top of its influence operations. At 54, he is one of the founders of Netscape, helping to usher in the internet age. He and Ben Horowitz founded a16z shortly after the 2008 financial crisis. He stands nearly six and a half feet tall, has a flamboyant personality, and has jokingly told (Fortune) that his motto could be 'frequently make mistakes, never doubt.'
Marc Andreessen has been a bipartisan campaign donor and donated to Barack Obama's first presidential campaign, but he completely shifted toward the Republican Party due to the Biden administration's push for stricter regulations on tech companies—especially measures limiting cryptocurrency and tech mergers. He has since become a major Republican donor and positioned himself as a 'tech right' thought leader.
In 2024, after donating $2.5 million to Trump's campaign team, Marc Andreessen met multiple times with the president at Mar-a-Lago. According to sources close to the White House, he frequently discusses tech policy with Trump over the phone and maintains communication with White House Chief of Staff Susie Wiles.
He also deliberately manages congressional relations. In 2024, Marc Andreessen attended a Republican donor event hosted by House Speaker Mike Johnson in Jackson Hole, Wyoming, and served as the keynote speaker. Since then, he has frequently visited Washington, becoming known for hosting private dinners with lawmakers at popular restaurants. He enjoys discussing philosophy in casual conversations, eager to host but not directly making specific policy demands.
According to an insider, during a two-hour dinner with Republican Senators Eric Schmitt and Mike Lee at the end of last year, he spent most of the time discussing AI-related books and podcasts that interest him.
The company registered its lobbying business for the first time in 2023, initially focusing on cryptocurrency legislation and defense procurement, which are also areas where it has a large tech investment portfolio.
Traditional venture capital firms typically only assess the political risks associated with investments, while a16z is 'proactively seeking ways to address risks before they disrupt investments.' Adam Thierer, a senior researcher at the center-right think tank R Street Institute, stated.
Marc Andreessen expressed no remorse about this. 'In theory, every venture capital firm and every tech company should be involved in these affairs. But the reality is that the vast majority are not,' he said in a January episode of the a16z podcast. He and Ben Horowitz 'essentially concluded that the stakes here are just too high. If we're going to be industry leaders, we have to take responsibility for our own fate.'
a16z is also willing to bear the costs for this. According to publicly disclosed information, the company's federal lobbying spending soared to $3.53 million in 2025, double that of 2024, far exceeding other venture funds like Sequoia Capital and Bessemer Venture Partners.
The company also helped establish a new lobbying organization, American Innovators Network, spending over $350,000 in New York alone to oppose AI safety legislation and targeting similar bills being advanced in other states across the country.
To create a more favorable Congress for its agenda, Marc Andreessen and Ben Horowitz jointly invested $50 million into a super PAC called Leading the Future, which has a total size of $100 million, to support pro-industry allies and oppose AI regulatory factions. The organization seeks to replicate the successful model of the cryptocurrency political action committee Fairshake supported by a16z, which invested tens of millions of dollars in the crucial 2024 congressional elections and successfully influenced the electoral outcomes.
'Everyone I've interacted with is very aware that there is a $100 million 'dragon' lurking here, ready to breathe fire and apply pressure at any moment,' stated Sunny Gandhi, vice president of political affairs at the AI safety organization Encode.
The company has many other connections in Washington. According to insiders, David Sacks frequently meets with a16z's government affairs team. White House senior AI policy advisor Sriram Krishnan was previously a partner at a16z before joining the government. The company’s close ties with David Sacks and Sriram Krishnan, in turn, make congressional aides more willing to engage with a16z's lobbying team.
a16z's office building is located in San Francisco, California. Photographer: Smith Collection/Getty Images
However, the leadership of this venture capital firm is determined to build influence that transcends Trump's term and to hedge against a potential Democratic comeback. According to an attendee, last spring, Marc Andreessen and a16z partner Chris Dixon accepted an invitation from moderate Democrats to hold a policy meeting focused on AI and cryptocurrency, attended by several Democratic members of the House.
'They are trying to cultivate factions that support innovation within both parties and at all levels of government,' stated Adam Kovacevich, chairman of Chamber of Progress, an organization aligned with the Democratic Party, of which a16z is also a member.
Marc Andreessen and Ben Horowitz packaged their push for looser regulations as a 'small tech agenda,' attempting to position the venture capital firm as a defender of vulnerable startups. This declaration was initially published in 2024, when the public was growing increasingly dissatisfied with large tech companies. a16z's chief lobbyist Collin McCune also adopted this phrasing, stating that his guiding principle is 'to protect small tech entrepreneurs and help them thrive.'
Critics scoff at this. 'They think anyone who wants to provide some protection for Americans is an idiot,' stated New York State Assembly member Alex Bores, who has become a target of a16z for initiating AI safety legislation in his state.
The company holds stakes in several large enterprises, including SpaceX, xAI, Airbnb, and Anduril Industries, which have seen their early investments skyrocket in value. According to PitchBook, a16z has invested in 10 of the 15 highest-valued venture-backed private companies globally. Its core business is betting on those new enterprises expected to become the next tech giants—this model relies on protecting the ability of startups to expand rapidly. Another significant revenue stream for a16z is through large tech companies acquiring the startups in which it has invested.
Critics argue that the company's holdings among major tech companies make its defense of 'small tech' seem hollow. a16z has not lobbied in support of using antitrust laws to curb the power of the largest tech companies.
Currently, a16z's stance on AI policy often aligns with that of the largest tech companies. When New York State Assembly member Alex Bores was on the verge of passing his AI safety bill, he asked a16z's policy team for advice on how to define small, medium, and large AI developers. Alex Bores originally agreed that the strictest provisions in the bill should only apply to the largest companies to protect startups.
a16z suggested that 'small' developers should be defined as companies with annual revenues from AI products not exceeding $50 million.
'This basically excludes nearly all companies on the planet,' Alex Bores stated in an interview. Ultimately, after strong lobbying from a16z and other tech companies, the version of the bill signed by New York Democratic Governor Kathy Hochul was significantly weakened.
Now, the company is setting its sights on the next step: assisting in the formulation of federal AI standards, which are expected to replace state AI laws even after Trump's term ends. a16z released a federal AI legislative roadmap in mid-December, calling for the inclusion of clauses such as 'model transparency'—requiring AI developers to disclose certain details about their models, such as intended uses and protections for children using AI. In addition, a16z's proposal focuses on punishing 'bad actors' who abuse AI rather than regulating the developers themselves.
Doug Calidas from the artificial intelligence safety organization Americans for Responsible Innovation rebutted that a16z's macro proposal is merely a 'small step' and lacks a plan to mitigate AI threats. He added that its proposed transparency clause only requires developers to disclose the 'most basic' information about their products.
According to two congressional aides involved in the preparations, core Republican members of Congress have adopted a16z's proposal as a legislative starting point. However, federal AI legislation is evolving into a significant battleground, with many stakeholders involved, including safety organizations advocating for holding AI developers accountable for damages caused by their products.
'How much influence we can exert will be a hard-fought battle,' stated Sunny Gandhi of Encode. 'But they can't just force things through.'