DOJ antitrust probe targets Andreessen Horowitz over competing AI board roles

The U.S. Department of Justice is conducting an antitrust investigation into the prominent venture capital firm Andreessen Horowitz, examining whether its partners improperly serve on the boards of competing artificial intelligence companies, according to people familiar with the matter. The probe, which has been underway for nearly a year, centers on whether the board roles violate federal rules against interlocking directorates.

At the heart of the inquiry are two of the firm's portfolio companies: data and AI firms Databricks and Fivetran. Andreessen Horowitz cofounder Ben Horowitz sits on the Databricks board, while partner Martin Casado serves as a director at Fivetran. Both companies develop technology for businesses to collect, organize, and analyze large volumes of data, placing them in competition with each other.

The investigation focuses on Section 8 of the Clayton Act, a 1914 law that generally prohibits a person from simultaneously serving as a director or officer of two competing corporations. Such arrangements are barred because they could facilitate the exchange of sensitive information and harm market competition. Legal experts note that while past enforcement...