By: Emily Birnbaum, Oma Seddiq, Bloomberg News

Translated by: Saoirse, Foresight News

One of Silicon Valley's most prestigious venture capital firms has quietly become a key player influencing Washington's artificial intelligence policy. With Donald Trump expressing support for the industry’s full-speed push into this emerging technology space, the firm's voice has become increasingly crucial.

According to current and former White House and congressional aides, senior White House officials and veteran Republican congressional aides generally first call a16z when considering initiatives that might impact technology companies' AI plans.

Their main contact is the firm's chief lobbyist in the capital, Collin McCune. A former White House official stated that the company, known as a16z, holds veto power over nearly all proposals related to artificial intelligence.

"They are an absolutely powerful lobbying force, possibly the most influential single entity I have seen in recent years," said Doug Calidas, chief lobbyist for Americans for Responsible Innovation, an organization opposed to a16z's efforts to weaken state laws related to AI.

The company's rise in Washington has been bolstered by significant investment in influence, the close relationship between co-founder Marc Andreessen and Trump, and a network of partners who have worked at the firm and now hold key positions in the government. It also skillfully packages its invested startups as models of free-market innovation valued by Washington, which is led by Republicans.

a16z's bold, aggressive approach and passionate push for deregulation reinforce the government's viewpoint: most regulatory constraints imposed on artificial intelligence would jeopardize the U.S.'s competitiveness in this rapidly developing technological field, while AI is a significant driver of recent economic growth in America. The firm was also a key player in the Trump administration's efforts to block states from implementing AI regulatory measures.

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

White House spokesperson Kush Desai stated in a statement that Trump and his advisers "are always willing to listen to the opinions of business and technology leaders," but "the only special interest guiding this administration's decision-making is the best interest of the American people; only President Trump has veto power over government policy."

Collin McCune also affirmed in the statement that Trump is "the only one setting artificial intelligence policy for this administration."

As of January, a16z managed assets totaling $90 billion, making it the largest venture capital firm by asset size in Silicon Valley (note: referring specifically to pure VC ventures). The firm recently completed the largest round of funding in history, raising $15 billion, and has invested billions in emerging AI companies like Cursor and LM Arena. These companies, along with a16z's holdings in large tech firms like OpenAI and Meta, stand to benefit from the lax regulatory policies the company is promoting in Washington.

The giant's uncompromising stance has made compromise on AI-related legislation more difficult, sometimes frustrating lobbyists from other large tech firms who are also allies in Washington policy. According to insiders, while tech giants like Microsoft and Amazon have expressed a willingness to compromise on federal AI standards, a16z 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 enterprises have the resources to deploy lawyers and compliance budgets, while "small companies founded by a few people in a garage have no means to make these compromises."

Many AI skeptics believe this technology could harm users, replicate biases against vulnerable groups, and replace jobs across industries, thus requiring regulation. Some AI developers even argue that without constraints, AI could lead to apocalyptic outcomes.

Last December, attempts were made to leverage a must-pass defense bill to block states from enacting AI safety-related laws, which is a typical manifestation of a16z's influence. Just a few months prior, tech industry allies in Congress had attempted to add similar provisions to Trump's signature tax bill, but were thwarted by a coalition of Republican governors, MAGA influencers, and children's safety organizations.

According to a senior Republican aide, while weighing the related operations of the defense bill, a16z's lobbyist Collin McCune was the first outside person to be contacted. Collin McCune expressed clear support and promptly acted to coordinate with White House AI chief David Sacks, House Majority Leader Steve Scalise, and Senate Commerce Committee Chair Ted Cruz.

This legislative maneuver was unsuccessful, but Trump subsequently used presidential power to achieve the same goal: signing an executive order to prevent states from enacting regulations against AI-related harms. According to someone close to the White House, a16z also assisted in drafting the content of this directive. The executive order echoed a novel argument pushed by a16z: under the Constitution's "Dormant Commerce Clause," states lack the authority to regulate the national AI market.

In December of last year, Trump signed an executive order limiting states' regulatory power over AI, which has long been a goal of the tech industry’s lobbying. Photographer: Alex Wong/Getty Images

The firm's hardline co-founder Marc Andreessen sits at the top of its influence operations. At 54 years old, he is one of the founders of Netscape, which helped launch the internet era. He and Ben Horowitz founded a16z shortly after the 2008 financial crisis. Standing nearly two meters tall, he has a larger-than-life personality and once joked to Fortune that his motto could be "frequently make mistakes, never doubt."

Marc Andreessen has been a bipartisan campaign donor and contributed to Barack Obama's first presidential campaign, but he has completely pivoted due to the Biden administration’s push for stricter regulation of tech companies—especially measures restricting cryptocurrency and tech company mergers. Since then, he has become a Republican mega-donor and positioned himself as a thought leader of the "tech right."

In 2024, after donating $2.5 million to the Trump campaign, Marc Andreessen held several lengthy meetings with the president at Mar-a-Lago. According to those close to the White House, he frequently discusses tech policy with Trump on the phone and maintains communication with White House Chief of Staff Susie Wiles.

He also deliberately builds congressional relationships. In 2024, Marc Andreessen attended a Republican donor event hosted by House Speaker Mike Johnson in Jackson Hole, Wyoming, where he served as the keynote speaker. Since then, he has frequently visited Washington, known for hosting private dinners with congressional members at trendy restaurants. He enjoys discussing philosophy in casual conversation but shies away from directly mentioning specific policy requests.

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 interested him.

The firm registered to lobby for the first time in 2023, initially focusing on cryptocurrency legislation and defense procurement, both areas where it holds substantial tech investment portfolios.

Traditional venture capital firms usually only assess the political risks faced by their investments, while a16z is "proactively seeking ways to address risks before they disrupt investments," said Adam Thierer, a senior research fellow at the center-right think tank R Street Institute.

Marc Andreessen has no regrets about this. "In theory, every venture capital, every tech company should be involved in these matters. But the reality is, the vast majority are not." He remarked in a January episode of the a16z podcast. He and Ben Horowitz "basically determined that the stakes here are too high. If we're going to be leaders in the industry, we have to be responsible for our own fate."

a16z is also willing to incur costs for this. According to public disclosures, the firm's federal lobbying expenditures soared to $3.53 million in 2025, double that of 2024, far surpassing other VCs like Sequoia Capital and Bessemer Venture Partners.

The firm also helped establish the new lobbying organization American Innovators Network, spending over $350,000 just in New York State to oppose AI safety legislation and targeting similar bills being advanced in other states across the U.S.

To create a more favorable Congress for its agenda, Marc Andreessen and Ben Horowitz jointly invested $50 million in a super PAC called Leading the Future, which has a total size of $100 million, to support pro-industry allies and oppose the AI regulation faction. The organization is trying to replicate the successful model of the crypto PAC Fairshake supported by a16z, which invested tens of millions of dollars in the crucial 2024 congressional elections and successfully influenced electoral outcomes.

"Everyone I meet is very aware that there is a $100 million 'dragon' lurking here, ready to breathe fire and apply pressure," said Sunny Gandhi, vice president of political affairs for the AI safety organization Encode.

The firm also has numerous other connections in Washington. According to insiders, David Sacks frequently meets with a16z's government affairs team. White House senior AI policy adviser Sriram Krishnan was a partner at a16z before joining the government. The close relationships that the firm maintains with David Sacks and Sriram Krishnan, in turn, make congressional aides more willing to engage with a16z's lobbying team.

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

Nevertheless, the venture capital firm's leadership is determined to build influence that surpasses Trump's term and prepare for a possible Democratic comeback. According to a participant, last spring, Marc Andreessen and a16z partner Chris Dixon accepted an invitation from moderate Democrats to host a policy meeting focused on AI and cryptocurrency, attended by multiple Democratic House members.

"They are attempting to cultivate a faction that supports innovation across parties and at all levels of government," said Adam Kovacevich, president of Chamber of Progress, an organization aligned with Democratic positions and of which a16z is also a member.

Marc Andreessen and Ben Horowitz packaged their advocacy for deregulation as a "Small Tech Agenda," trying to position their venture capital firm as a defender of vulnerable startups. This declaration was initially released in 2024 when public dissatisfaction with large tech companies was prevalent. a16z's chief lobbyist Collin McCune also embraced this terminology, stating that his guiding principle is "to protect small tech entrepreneurs and let them thrive."

Critics scoff at this. "They think anyone trying to provide some protection for Americans is an idiot," said New York State Assemblymember Alex Bores, who became a target of a16z for initiating AI safety legislation in his state.

The firm holds stakes in several large companies, including SpaceX, xAI, Airbnb, and Anduril Industries, whose early investments have now skyrocketed in value. According to PitchBook data, a16z has invested in 10 of the top 15 most highly valued VC-backed private companies globally. Its core business is betting on startups that are expected to become the next tech giants—this model relies on protecting the ability of startups to scale rapidly. Another crucial way a16z profits is through large tech companies acquiring its invested startups.

Critics argue that the firm’s holdings in large tech companies make its defense of "small tech" seem hollow. a16z has not lobbied in support of using antitrust laws to constrain the power of the largest tech firms.

Currently, a16z's stance on artificial intelligence policy often aligns with that of the largest tech companies. When New York State Assemblymember Alex Bores was about to pass his AI safety bill, he had requested that a16z's policy team provide suggestions on how to define small, medium, and large AI developers. Alex Bores originally agreed that the most stringent provisions of the bill should only apply to the largest companies to protect startups.

a16z's suggestion was that "small" developers should be defined as companies with annual revenue from AI products not exceeding $50 million.

"This basically excludes all companies on Earth," Alex Bores said in an interview. Ultimately, after strong lobbying from a16z and other tech firms, the version of the bill signed by New York State Governor Kathy Hochul was significantly weakened.

Now, the firm is turning its attention to the next step: aiding in the formulation of federal AI standards, which aim to replace state AI laws even after Trump's term ends. a16z released a roadmap for federal AI legislation in mid-December, calling for the inclusion of provisions such as "model transparency"—requiring AI developers to disclose certain details about their models, such as anticipated uses and protections for children using AI. Besides this, a16z's proposals focus on punishing "bad actors" who misuse AI rather than regulating the developers themselves.

Doug Calidas of the AI safety organization Americans for Responsible Innovation countered that a16z's macro proposals are merely "small steps," lacking solutions to mitigate AI threats. He added that its proposed transparency provisions only require developers to disclose the "most basic" information about their products.

According to two congressional aides involved in preparations, core Republican lawmakers have taken a16z's proposals as a starting point for legislation. However, federal AI legislation is evolving into a major battleground, with numerous stakeholders including safety organizations advocating for holding AI developers accountable for the harm their products cause.

"How much influence we can wield will be a tough battle," said Sunny Gandhi of Encode, "but they cannot just force things through."