Spending money, lobbying, and befriending Trump: How a16z is shaping the Washington AI agenda

Written by: Emily Birnbaum, Oma Seddiq, Bloomberg

Translated by: Saoirse, Foresight News

One of Silicon Valley’s most prestigious venture capital firms has become a behind-the-scenes influencer shaping Washington’s artificial intelligence policies. As former President Donald Trump publicly supports the industry’s push in this emerging tech sector, the firm’s influence has become increasingly critical.

According to current and former White House and Congressional aides, the first external call made when senior White House officials and veteran Republican congressional aides consider measures that could impact tech companies’ AI plans is often to a16z.

Their main contact is the firm’s in-house Washington lobbyist, Collin McCune. A former White House official said that a16z, short for Andreessen Horowitz, nearly has veto power over all proposals related to artificial intelligence.

“They are an absolutely powerful lobbying force, possibly the most influential single entity I’ve seen in recent years,” said Doug Calidas, chief lobbyist for Americans for Responsible Innovation. The organization opposes a16z’s efforts to weaken state-level AI laws.

The firm’s rise in Washington is fueled by massive influence investments, close ties between co-founder Marc Andreessen and Trump, and a network of partners who previously worked at the firm and now hold key government positions. It also cleverly packages its portfolio startups as free-market innovation exemplars favored by Washington’s Republican-led circles.

a16z’s bold, aggressive stance and enthusiasm for deregulation reinforce the government’s view: that most regulatory constraints on AI could threaten U.S. competitiveness in this rapidly evolving field, which is also a key driver of recent economic growth. The firm has been a key player in blocking state-level AI regulations during the Trump administration.

Marc Andreessen and his wife, renowned American philanthropist Laura Arrillaga-Andreessen, photographed in April. Photographer: Craig T Fruchtman / Getty Images

White House spokesperson Kush Desai stated in a release that Trump and his advisors “are always willing to listen to industry and tech leaders,” but “the only special interest guiding this administration’s decisions is the American people’s best interests; only President Trump has veto power over government policy.”

Collin McCune also stated that Trump is “the only person in this administration shaping AI policy.”

As of January, a16z managed assets totaling $90 billion, making it the largest Silicon Valley venture capital firm (note: this refers to pure VC operations). Recently, the firm completed its largest funding round ever, raising $15 billion, and invested billions in emerging AI companies like Cursor and LM Arena. These companies, along with a16z’s holdings in giants like OpenAI and Meta, stand to benefit from the deregulation policies pushed in Washington.

This unwavering stance makes legislative compromises on AI more difficult and sometimes frustrates other tech giants’ lobbyists who are allies in Washington. Sources say that although giants like Microsoft and Amazon have expressed willingness to compromise on federal AI standards, a16z has outright rejected proposals that could impose significant new regulations on AI development.

Jai Ramaswamy, a16z’s chief legal and policy officer, said, “The end result is that big companies start to make trade-offs.” Large firms can deploy legal and compliance budgets, but “small startups in garages simply can’t afford to make these compromises.”

Many AI skeptics believe the technology could harm users, replicate biases against vulnerable groups, and displace jobs across industries, thus warranting regulation. Some developers even argue that without constraints, AI could lead to a doomsday scenario.

In December last year, efforts to use the must-pass defense bill to block states from enacting AI safety laws exemplify a16z’s influence. Just months earlier, allies in Congress had attempted to include similar provisions in Trump’s signature tax reform bill but were blocked by Republican governors, MAGA influencers, and child safety organizations.

According to a senior Republican aide, during the maneuvering around the defense bill, a16z’s lobbyist Collin McCune was the first outside government contact. He provided clear support and immediately coordinated efforts with White House AI chief David Sacks, House Majority Leader Steve Scalise, and Senate Commerce Committee Chair Ted Cruz.

The legislative effort failed, but Trump later used executive authority to achieve the same goal: signing an executive order to prevent states from enacting regulations to mitigate AI-related harms. An insider close to the White House said a16z helped draft the order’s language. The directive echoes a16z’s novel position that under the “dormant commerce clause” of the Constitution, states lack authority to regulate the national AI market.

In December, Trump signed an executive order limiting states’ authority to regulate AI, a long-standing goal of the tech industry’s lobbying efforts. Photographer: Alex Wong / Getty Images

At the top of this influence is co-founder Marc Andreessen, 54, a key figure in shaping the firm’s impact. A Netscape pioneer who helped usher in the internet era, he co-founded a16z with Ben Horowitz shortly after the 2008 financial crisis. Tall and flamboyant, Andreessen has joked that his motto could be “Make mistakes often, never doubt.”

He has been a donor to both parties’ campaigns, including a contribution to Barack Obama’s first presidential run, but shifted fully to the Republican side after the Biden administration pushed for stricter tech regulation—especially measures restricting crypto and tech mergers. He now positions himself as a “tech right-wing” thought leader and major Republican donor.

In 2024, after donating $2.5 million to Trump’s campaign, Andreessen has met with the president multiple times at Mar-a-Lago. Sources say he often discusses tech policy with Trump over the phone and maintains contact with White House Chief of Staff Susie Wiles.

He also actively cultivates relationships in Congress. In 2024, Andreessen attended a Republican donor event in Jackson Hole, Wyoming, hosted by House Speaker Mike Johnson, and was a featured speaker. He frequently visits Washington, known for hosting private dinners with lawmakers at popular restaurants. He enjoys philosophical conversations but rarely makes specific policy demands.

A source says that during a two-hour dinner late last year with Republican Senators Eric Schmitt and Mike Lee, Andreessen mostly discussed his interests in AI-related books and podcasts.

The firm registered its lobbying activities for the first time in 2023, initially focusing on cryptocurrency legislation and defense procurement—areas where it holds substantial tech investments.

Traditional VC firms typically assess political risks of investments, but a16z takes proactive steps to address risks before they disrupt investments, says Adam Thierer, senior fellow at the right-leaning R Street Institute.

Andreessen is unapologetic about this approach. “In theory, every VC and tech company should be involved in these issues,” he said in a January podcast. “But in reality, most aren’t. We believe the stakes are too high. If we want to be industry leaders, we have to take responsibility for our own fate.”

a16z is willing to bear the costs. Public disclosures show that its federal lobbying spending alone is projected to reach $3.53 million in 2025, double that of 2024 and far surpassing other top VCs like Sequoia Capital and Bessemer Venture Partners.

The firm also helped establish a new lobbying group, American Innovators Network, which spent over $350,000 in New York State alone opposing AI safety legislation and aims to influence similar bills nationwide.

To build a more favorable Congress, Andreessen and Horowitz jointly contributed $50 million to a super PAC called Leading the Future, which has a total budget of $100 million to support industry-friendly allies and oppose AI regulation advocates. The group aims to replicate the success of a16z’s crypto political action committee, Fairshake, which spent tens of millions in key 2024 congressional races and successfully influenced the outcome.

“I’ve heard from everyone involved that a $100 million ‘dragon’ is lurking, ready to breathe fire,” said Sunny Gandhi, vice president of political affairs at Encode, an AI safety organization.

a16z also maintains numerous other connections in Washington. Sources say David Sacks frequently meets with the firm’s government affairs team. Sriram Krishnan, a senior policy advisor on AI at the White House, was previously a partner at a16z. The close ties between Sacks, Krishnan, and the firm make congressional aides more willing to engage with a16z’s lobbying efforts.

a16z’s office building in San Francisco, California. Photographer: Smith Collection / Getty Images

But the firm’s leadership is determined to build influence beyond Trump’s term and prepare for a Democratic return. A participant said that last spring, Andreessen and partner Chris Dixon hosted a policy meeting focused on AI and crypto at the invitation of moderate Democrats, attended by several House Democrats.

“They’re trying to cultivate support for innovation across party lines and at all levels of government,” said Adam Kovacevich, president of the Chamber of Progress, which aligns closely with Democratic views and includes a16z as a member.

Andreessen and Horowitz frame their push for deregulation as a “small tech agenda,” aiming to position the firm as a defender of vulnerable startups. This declaration, first issued in 2024 amid widespread public dissatisfaction with big tech, is echoed by Collin McCune, who says his guiding principle is “protect small tech entrepreneurs and let them thrive.”

Critics dismiss this narrative. “They think anyone who tries to protect Americans is an idiot,” said New York State Assembly member Alex Bores, who has sponsored AI safety legislation in New York and become a target of a16z.

The firm holds stakes in several major companies, including SpaceX, xAI, Airbnb, and Anduril Industries, whose early investments have now skyrocketed in value. According to PitchBook, a16z has invested in 10 of the 15 highest-valued private VC-backed companies globally. Its core strategy is betting on startups that could become the next tech giants—relying on the ability to rapidly scale early-stage companies. Another major revenue source is acquisitions of its portfolio startups by large tech firms.

Critics argue that these holdings in big tech make a16z’s claims to defend “small tech” hollow. The firm has not lobbied to support antitrust actions against the largest tech companies.

Currently, a16z’s stance on AI policy often aligns with the biggest tech firms. When New York State legislator Alex Bores sought input on how to define small, medium, and large AI developers for his AI safety bill, a16z’s policy team recommended that “small” be defined as companies with annual AI product revenue under $50 billion.

“That basically excludes almost every company on Earth,” Bores said in an interview. Ultimately, after intense lobbying by a16z and other tech giants, the bill signed by Democratic Governor Kathy Hochul was significantly weakened.

Now, the firm is eyeing the next step: helping craft federal AI standards that could supersede state laws after Trump’s presidency. In mid-December, a16z released a roadmap for federal AI legislation, calling for inclusion of “model transparency” provisions—requiring developers to disclose certain details about their models, such as intended use and protections for children. Its proposal emphasizes penalizing “bad actors” misusing AI rather than regulating developers directly.

Doug Calidas of Americans for Responsible Innovation countered that a16z’s broad proposals are “small steps” lacking real solutions to AI threats. He added that their transparency requirements only ask developers to publish “the most basic” information.

Two congressional aides involved in drafting said that core Republican lawmakers have used a16z’s proposals as a starting point for legislation. But federal AI legislation is now a complex battleground, with many stakeholders—including safety organizations advocating for holding developers accountable for AI harms.

“We’re going to have a tough fight over how much influence we can exert,” said Sunny Gandhi of Encode. “But they’re not going to be able to push things through by force.”