When Elon Musk and Donald Trump's relationship dramatically fractured, other tech giants have been quietly laying out their influence in Washington for years. Among these giants, few have had a more profound impact than Marc Andreessen. This California-based venture capitalist, who has long donated to the Democratic Party, has now shifted his political stance and become a close ally of Trump. Andreessen stated that his transformation was definitively confirmed after being snubbed by President Joe Biden at the White House last year.
At the time, Andreessen and his long-time investment partner Ben Horowitz, who together founded the legendary Silicon Valley venture capital firm Andreessen Horowitz (a16z), went to Washington. They were concerned about Biden's attitude towards cryptocurrency and hoped to discuss artificial intelligence (AI) with the then-president, but Biden refused to meet with them. They ultimately met with senior government staff, whose radical AI regulatory vision shocked the investors. "We thought, 'Oh my God, they're going to kill us,'" Andreessen recalled in a podcast earlier this year, "They're going to destroy our company."
From that day forward, Andreessen said he fully supported Trump. Even before that crucial White House visit, relations between the Biden administration and the tech industry were already tense. Biden appointed regulators like Lina Khan to the Federal Trade Commission, aimed at limiting the growing economic power of the tech industry. Meanwhile, a larger social transformation was occurring: many Americans began to be wary of social media and large tech companies, and within tech companies, some employees were opposing their bosses' handling of issues like misinformation, war, and immigration.
For many tech industry veterans, this was a confusing reversal. "From Andreessen's statements and articles in recent years, you can see he's very personal, and he feels hurt by all opposition and criticism," said Margaret O'Mara, a Silicon Valley history professor at the University of Washington, "They're used to being listened to, and not being heard frustrates him greatly."
Today, Andreessen is deeply connected with the Trump administration, wielding the influence to change Washington's culture. Like Silicon Valley billionaires Musk and Peter Thiel, he has over six allies in his network appointed to senior positions, overseeing the industries and companies he supports.
"President Trump promises to ensure America's dominance in AI and other cutting-edge technologies that will define the 21st century, and the government is committed to collaborating with the best and brightest talents from the private sector to achieve this mission," said White House spokesperson Kush Desai.
Andreessen and current government employees from a16z and its portfolio companies did not respond to requests for comment. Since Trump took office, companies associated with Andreessen have achieved significant victories: the SEC withdrew civil enforcement actions against Coinbase Global Inc.; OpenAI was included in the planned $500 billion Stargate AI infrastructure project; and the defense tech startup Anduril will manage and manufacture new infantry goggles for the US Army, with a contract potentially exceeding $2 billion.
Meanwhile, some warn that being close to Trump does not guarantee favorable outcomes. Musk, who was close to Trump as the head of DOGE (Digital Office of Government Execution), recently publicly broke with the president, with Trump threatening to terminate government contracts for SpaceX and Tesla. Coinbase is facing a new SEC investigation about potentially misreporting user numbers, with its chief lawyer calling it a Biden administration legacy that "should not continue." Additionally, like many industries, the tech sector has been damaged by Trump's inconsistent tariff policies.
"They've put their eggs in Trump's quite fragile basket," O'Mara said, "It's a bold bet that could succeed or fail."
Here are the key areas of Andreessen's influence in Washington:
Defense Technology
Objective: In 2022, a16z launched a national security-focused project called "American Dynamism", primarily investing in defense tech startups, including companies manufacturing autonomous drones, aircraft, and ships. The project's success depends on securing government contracts, which are highly competitive and involve complex, lengthy processes.
Andreessen's Allies: Several former employees of a16z's primary defense investment project, Anduril, have joined the government, including the Pentagon. Michael Obadal, who was nominated as the Army's second civilian official in March, was previously a senior director at Anduril. Another, Ryan Wunderly, was an Anduril robotics engineer who later joined the DOGE department of the Treasury.
Highlights: According to PitchBook data, from 2021 to early this year, the Pentagon, focused on innovation, has invested over $130 billion in defense tech startups, double the amount of the previous four years. Crunchbase data shows that from 2021 to August 2024, a16z invested in 14 related enterprises, more than any other venture capital firm. Other leaders in defense tech investment include 8 VC by Joe Lonsdale, co-founder of Palantir Technologies, and Founders Fund by Thiel. Last week, Anduril stated its valuation has doubled since last year, reaching $30.5 billion in a new funding round led by Founders Fund.
Cryptocurrency
Objective: Andreessen wants the government to encourage cryptocurrency industry development and establish a lenient regulatory framework to normalize cryptocurrency's social application. In 2022, when Biden signed an executive order calling for "responsible digital asset development", Andreessen called the government's approach "terrorism", claiming Biden tried to prevent crypto startup founders from using US banking services, though federal officials denied this.
Andreessen's Allies: Brian Quintenz, who manages a16z's crypto policy, has been nominated to lead the Commodity Futures Trading Commission (CFTC), which regulates cryptocurrencies. He promised to recuse himself from matters directly related to the company or its funds for two years unless granted an exemption. The Senate held a confirmation hearing for his nomination on Tuesday.
Highlights: Trump's executive order aims to make the US a "center of digital financial technology innovation", keeping cryptocurrencies free from "restrictive regulations or unnecessary government intervention". Trump's family business has already launched a meme coin and hinted at plans to purchase billions of dollars in Bitcoin. In Congress, Andreessen supports the GENIUS Act, which establishes standards for stablecoins. Another bill, the CLARITY Act, would increase transparency in rules for crypto exchanges like Coinbase, thereby reducing legal risks. a16z's general partner Chris Dixon stated the company's support for both legislative measures.
Artificial Intelligence
Objective: Andreessen has made deep investments in dozens of AI companies and hopes to secure favorable regulation to enable the industry to develop rapidly in the US and surpass foreign competitors.
Andreessen's Allies: Sriram Krishnan, a four-year a16z general partner, joined the White House as an AI senior policy advisor, collaborating with Trump's crypto and AI lead David Sacks. Sacks, a long-time ally of Musk and Thiel, frequently echoes Andreessen's AI statements. According to Politico, at the Department of Health and Human Services, 22-year-old a16z engineering researcher Peter Bowman-Davis took a leave from Yale and was appointed as acting chief AI officer. Wired reported in May that OpenAI met with the FDA to discuss potential collaboration, with Bowman-Davis also participating in discussions about the agency's AI program.
Highlights: On his first day in office, Trump revoked a 2023 executive order issued by Biden aimed at establishing a federal government regulatory mechanism for AI development. A tax bill passed by the House in May includes a measure that would prevent states from implementing new AI regulatory rules in the next decade. Over 200 state legislators from both parties urged Congress to repeal this measure.
In May, Krishnan met with Trump and Saudi Crown Prince Mohammed bin Salman in the Persian Gulf, accompanied by Horowitz, Musk, OpenAI CEO Sam Altman, and others. Krishnan helped facilitate a deal to sell over a million Nvidia chips to the UAE. "This 'AI diplomacy' will help the US tech stack lock in the region," he posted on X. However, some are concerned this could shift computing power away from the US, potentially falling into Chinese companies' hands.
Other Relationships
Andreessen has allies in the Office of Personnel Management (OPM), which is essentially the federal government's HR office. Trump's chosen leader for this agency is Scott Kupor, a former executing partner at a16z who lists himself as the company's "employee number 1" on LinkedIn. OPM closely collaborates with DOGE on federal government layoff issues.
Greg Hogan, formerly the infrastructure vice president of Comma.ai (an a16z investment), now serves as the Chief Information Officer of OPM, responsible for the agency's data and cybersecurity. Sam Corcos, the new Chief Information Officer of the Treasury Department, is the co-founder and CEO of food tracking startup Levels, which a16z invested in in August.
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