REPORT: DOJ Opens Probe Into Top Venture Capital Firm

The U.S. Justice Department (DOJ) launched an antitrust probe into Andreessen Horowitz, one of the largest venture capital firms, to determine whether the firm’s leaders improperly hold board seats at rival AI firms, a report shows.

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Citing people familiar with the matter, Bloomberg reported Monday that the two AI firms not only have board members in the highest positions at Andreessen Horowitz, but are also both backed by the firm. (RELATED: Wall Street Banks Duking It Out With Crypto Bros Over Key Bill)

Andreessen Horowitz co-founder Ben Horowitz serves on the board of Databricks, one of the most valuable private technology companies in the world. His partner, Martin Casado, is a member of the Fivetran board. Fivetran is a competing firm that also aids businesses in gathering and sorting data, Bloomberg reported.

The DOJ’s investigation will determine whether the companies are violating Section 8 of the Clayton Act, which, with some exceptions, prohibits one person from serving as a director of two competing corporations if each corporation has over $10 million in capital, surplus and undivided profits, unless the competitive sales of either corporation are less than $1 million, according to the Federal Register.

Previous investigations into alleged Section 8 violations have resulted in members resigning from one of the rival boards, including seven directors in 2022, Crypto Briefing reported.

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While the investigation is only coming to light now, Bloomberg reported that it has been ongoing for about a year, beginning roughly around the time regulators began reviewing Fivetran’s purchase of dbt Labs, whose board Casado had also served on before the transaction.

The acquisition went through; however, the probe into Andreessen Horowitz continues, with the possibility that no action will be taken against the venture capital firm, according to Bloomberg.

A DOJ spokesperson told the Daily Caller that the department does not “confirm or deny nor otherwise comment on the status of an investigation.”

“We can affirm that the DOJ under the Trump administration will continue to prioritize affordability for all Americans across our economy,” the DOJ said.

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Andreessen Horowitz did not respond to the Daily Caller’s request for comment.