Spending money, lobbying, and cultivating relationships with Trump: Unveiling how a16z orchestrated the Washington AI agenda.

Written by: Emily Birnbaum and Oma Seddiq, Bloomberg

Compiled by: Saoirse, Foresight News

One of Silicon Valley's most prestigious venture capital firms has become a behind-the-scenes force influencing Washington's artificial intelligence policy. Its influence has grown increasingly crucial as Donald Trump has expressed strong support for the industry's push into this emerging technology sector.

According to current and former White House and congressional aides, when senior White House officials and senior congressional Republican aides consider initiatives that could impact tech companies’ artificial intelligence plans, the first external agency they typically call for advice is a16z.

Their primary contact was Collin McCune, the company's chief lobbyist in the capital. A former White House official stated that this company, known as a16z, has veto power over virtually all proposals related to artificial intelligence.

"They are an absolutely powerful lobbying force, possibly the most powerful single organization I've seen in recent years," said Doug Calidas, chief lobbying officer at Americans for Responsible Innovation, an organization that opposes a16z's efforts to weaken state laws related to artificial intelligence.

The company's rise in Washington is attributed to massive influence investments, co-founder Marc Andreessen's close relationship with Trump, and a network of partners who previously worked at the company and now hold key government positions. It also skillfully packages its portfolio startups as paragons of free-market innovation favored by Republican-dominated Washington.

a16z's bold and aggressive approach, coupled with its enthusiasm for deregulation, reinforced the government's view that most government-imposed regulations on artificial intelligence would jeopardize America's competitiveness in this rapidly developing technology sector, a key driver of recent U.S. economic growth. The company was also a key figure in the Trump administration's efforts to obstruct states from enacting AI regulations.

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 said in a statement that Trump and his advisors "have always been willing to listen to business and technology leaders," but "the only special interest guiding this administration's decisions is the greatest interest of the American people; and only President Trump has the veto power over government policy."

Collin McCune also stated in a statement that Trump is "the only person in this administration who has made artificial intelligence policy."

As of January, a16z managed $90 billion in assets, making it the largest venture capital firm in Silicon Valley (referring to pure VC operations). The company recently completed its largest funding round ever, raising $15 billion, and has invested billions more in emerging AI companies such as Cursor and LM Arena. These companies, along with a16z's holdings in large tech companies like OpenAI and Meta, will benefit from the more lenient regulatory policies it has been pushing for in Washington.

This tech giant's unwavering stance has made compromises on AI-related legislation more difficult, sometimes even frustrating lobbyists from other large tech companies that are policy allies in Washington. According to sources, while tech giants like Microsoft and Amazon have expressed willingness to compromise on federal AI standards to lawmakers, a16z has directly rejected proposals that would impose significant new regulations on AI development.

"The end result is that large companies are starting to make trade-offs," said Jai Ramaswamy, chief legal and policy officer at a16z. "Large corporations can leverage their lawyers and compliance budgets, while 'small companies started by a few people in a garage simply don't have the capacity to make those compromises.'"

Many AI skeptics believe that the technology could harm users, replicate real-world biases against vulnerable groups, and replace jobs across various industries, thus warranting regulation. Some AI developers even believe that, without restraint, AI could lead to the apocalypse.

Last December, an attempt to use a crucial defense bill to block states from enacting AI safety laws was a prime example of a16z's influence. Just months earlier, tech industry allies in Congress attempted to include similar provisions in Trump's signature tax bill, but were blocked by Republican governors, MAGA influencers, and a coalition of child safety organizations.

According to a senior Republican aide, Collin McCune, a lobbyist for a16z, was the first person outside the government to be called when weighing the actions related to the defense bill. McCune offered clear support and acted immediately, assisting in coordinating with White House AI director David Sacks, House Majority Leader Steve Scalise, and Senate Commerce Committee Chairman Ted Cruz.

This legislative attempt failed, but Trump subsequently used presidential power to achieve the same goal: signing an executive order to prevent states from enacting regulations to prevent harm related to artificial intelligence. According to a source close to the White House, a16z also assisted the government in drafting the order. The executive order echoes a novel argument promoted by a16z: that, based on the Constitution's "dormant commerce clause," states have no right to regulate the national artificial intelligence market.

Last December, Trump signed an executive order limiting states' power to regulate artificial intelligence, a move that the tech industry had long lobbyed for. Photographer: Alex Wong/Getty Images

At the apex of the company's powerful co-founder, Marc Andreessen, is the force behind its operations. The 54-year-old co-founder of Netscape, who helped usher in the internet age, co-founded a16z with Ben Horowitz shortly after the 2008 financial crisis. Nearly two meters tall and flamboyant, he once jokingly told Fortune that his motto could be "Make mistakes often, but never doubt them."

Marc Andreessen was a bipartisan campaign donor, having contributed to Barack Obama's first presidential campaign, but he completely shifted his allegiance due to the Biden administration's push for stricter regulations on tech companies—particularly restricting cryptocurrency and tech mergers and acquisitions. He subsequently became a major Republican donor and positioned himself as a thought leader on the "tech right."

In 2024, after donating $2.5 million to the Trump campaign, Marc Andreessen met with the president for several extended periods at Mar-a-Lago. According to sources close to the White House, he frequently spoke with Trump by phone to discuss technology policy and also maintained communication with White House Chief of Staff Susie Wiles.

He also deliberately cultivated congressional relations. In 2024, Marc Andreessen attended and spoke at a Republican donor event hosted by House Speaker Mike Johnson in Jackson Hole, Wyoming. Since then, he has frequently visited Washington, D.C., and is known for hosting private dinners with members of Congress at popular restaurants. In casual conversation, he enjoys discussing philosophy and is hospitable but avoids making direct policy demands.

According to a source familiar with the matter, 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 talking about books and podcasts related to artificial intelligence that he was interested in.

The company first registered its lobbying business in 2023, initially focusing on cryptocurrency legislation and defense procurement, areas in which it also has a large technology portfolio.

Traditional venture capital firms typically only assess the political risks associated with investments, while a16z "proactively seeks solutions before risks disrupt investments," said Adam Thierer, a senior fellow at the center-right R Street Institute.

Marc Andreessen showed no remorse. "In theory, every venture capital firm and every tech company should be involved in these matters. But the reality is, the vast majority aren't," he said on the a16z podcast in January. He and Ben Horowitz "basically agreed that the stakes here are too high. If we want to be industry leaders, we have to take responsibility for our own destiny."

a16z is also willing to pay the price. According to publicly disclosed information, the company's federal lobbying spending alone soared to $3.53 million in 2025, double that of 2024, far exceeding other venture capital firms such as Sequoia Capital and Bessemer Venture Partners.

The company also helped establish a new lobbying group, the American Innovators Network, which spent over $350,000 in New York State alone opposing AI safety legislation and targeting similar bills being pushed forward in other states across the country.

To cultivate a more agenda-friendly Congress, Marc Andreessen and Ben Horowitz jointly injected $50 million into a $100 million super PAC called Leading the Future, which will support pro-industry allies and opponents of AI regulation. The group aims to replicate the success of Fairshake, a cryptocurrency PAC backed by a16z, which invested tens of millions of dollars and successfully influenced the outcome of the crucial 2024 congressional elections.

"Everyone I've spoken to is very clear that there's a $100 million 'dragon' lurking here, ready to breathe fire and exert pressure on them at any moment," said Sunny Gandhi, vice president of political affairs at the AI ​​security organization Encode.

The company also has numerous other connections in Washington. According to sources familiar with the matter, David Sacks frequently meets with a16z's government affairs team. Sriram Krishnan, a senior policy advisor on artificial intelligence at the White House, was a partner at a16z before joining the government. The company's reputation for close ties with David Sacks and Sriram Krishnan, in turn, makes congressional aides more willing to engage with a16z's lobbying team.

a16z is an office building located in San Francisco, California. Photographer: Smith Collection/Getty Images

But the venture capital firm's leadership is determined to build influence beyond Trump's term and hedge against a Democratic resurgence. According to an attendee, last spring, Marc Andreessen and a16z partner Chris Dixon accepted an invitation from moderate Democrats to host a policy conference focusing on artificial intelligence and cryptocurrency, which was attended by several Democratic members of the House of Representatives.

"They are trying to cultivate factions that support innovation within both parties and at all levels of government," said Adam Kovacevich, president of the Chamber of Progress, an organization with similar stances to the Democratic Party, and of which a16z is a member.

Marc Andreessen and Ben Horowitz packaged their advocacy for lax regulation as the "small tech agenda," attempting to position the venture capital firm as a champion of vulnerable startups. This manifesto was initially released in 2024, a time of widespread public discontent with large tech companies. Collin McCune, chief lobbyist at a16z, echoed this sentiment, stating that his guiding principle is "protecting small tech entrepreneurs and helping them thrive."

Critics scoffed at the idea. "They think anyone who wants to provide some kind of protection for Americans is an idiot," said New York State Representative Alex Bores, who became a target of a16z for his advocacy for AI safety legislation in the state.

The company holds stakes in numerous large corporations, including SpaceX, xAI, Airbnb, and Anduril Industries, whose early investments have since skyrocketed in value. According to PitchBook, a16z has invested in 10 of the world's 15 most valuable venture-backed private companies. Its core business is betting on emerging companies poised to become the next tech giant—a model that relies on the ability to protect startups as they rapidly expand. Another key revenue stream for a16z is the acquisition of its portfolio startups by large tech companies.

Critics argue that the company's stakes in large tech companies render its defense of "small tech" hollow. a16z has not lobbied for antitrust action to constrain 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 Assemblyman Alex Bores was about to pass his AI safety bill, he asked the a16z policy team for advice on how to define small, medium, and large AI developers. Bores had previously agreed that the strictest provisions in the bill should only apply to the largest companies to protect startups.

a16z suggests that "small" developers should be defined as companies with annual revenue of no more than $50 billion from AI products.

"This basically excludes every company on Earth," Alex Bores said in an interview. Ultimately, after strong lobbying by 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 development of federal AI standards, which are expected to supersede state AI laws even after Trump's term ends. In mid-December, a16z released a federal AI legislation roadmap, calling for the inclusion of provisions such as "model transparency"—requiring AI developers to disclose details of their models, such as their intended use and protections for children using AI. Beyond this, a16z's proposal focuses on punishing "bad actors" who misuse AI, rather than regulating the developers themselves.

Doug Calidas of the AI ​​security organization Americans for Responsible Innovation countered that a16z's macro-level proposal was merely a "small-scale attempt" and lacked a solution to mitigate the threat of artificial intelligence. He added that its proposed transparency clauses only required developers to disclose the "most basic" information about their products.

According to two congressional aides involved in the preparations, core Republicans in Congress have set the a16z proposal as a starting point for legislation. However, federal AI legislation is evolving into a major power struggle, with numerous stakeholders involved, including security organizations that support holding AI developers accountable for damages caused by their products.

"How much influence we can exert will be a tough battle," said Sunny Gandhi of the Encode organization. "But they can't just force things over there."