As US AI policy shifts towards deregulation and enhanced competitiveness, Silicon Valley venture capital giant Andreessen Horowitz (a16z) has quietly entered the heart of Washington's decision-making process. Multiple White House and congressional staff have revealed that a16z has become a priority consultancy during White House AI policy assessments, even described as having "virtually veto power" on some issues, and is considered by AI regulatory groups as one of the most influential lobbying forces in Washington in recent years. This article will explore why a venture capital firm has gained such a crucial position in AI policy discussions.
Benefiting from the Trump administration's AI-friendly policies, a16z's investment has expanded rapidly.
a16z has seen its capital scale expand rapidly in recent years, with assets under management reaching approximately $90 billion as of January this year, making it one of the largest venture capital firms in Silicon Valley.
The company recently completed a record-breaking $15 billion fundraising round and stated that it will invest heavily in AI startups and platforms, including the program generation startup Cursor and the AI leaderboard platform LM Arena, while also holding stakes in large technology companies such as OpenAI and Meta. Therefore, a16z's aforementioned investments also benefit from the current AI-friendly policy environment of the Trump administration.
Opposes increased AI regulation; development path aligns with the Trump administration.
a16z opposes establishing new AI development review and oversight mechanisms, emphasizing that large tech companies have the resources to bear compliance costs, but most AI startups are small teams that struggle to handle heavy regulatory burdens. Jai Ramaswamy, a16z's Head of Legal and Policy, also pointed out that large corporations can make policy trade-offs, while small teams lack such flexibility.
Therefore, a16z's stance on AI regulation is highly consistent with the mainstream view within the Trump administration that "AI should be avoided from being over-regulated."
The bill failed to pass Congress, so the White House resorted to executive orders.
In late 2025, the U.S. Congress attempted to include a clause in a mandatory defense bill to restrict states from setting their own AI safety regulations. A senior Republican aide revealed that the first person consulted during the evaluation of this strategy was Collin McCune, a lobbyist for a16z, and that the action was coordinated with White House AI cryptography czar David Sacks, House Majority Leader Steve Scalise, and Senate Commerce Committee Chairman Ted Cruz.
The legislation ultimately failed, and Trump subsequently resorted to executive orders to try to restrict states from setting up AI safety barriers. The content of the executive order also echoed a16z's statement that "potential business terms could limit state governments' regulatory authority over the national AI market."
Lobbying funds increased simultaneously, and political influence took shape.
Among them, Marc Andreessen, co-founder of a16z, has close ties with Trump. In 2024, he donated $2.5 million to Trump's campaign and held several long talks at Mar-a-Lago. He also regularly discusses technology policy with White House Chief of Staff Susie Wiles.
He also actively cultivates congressional relations, attends Republican donor gatherings, and dines privately with members of Congress in Washington, D.C. In recent years, a16z has significantly increased its political lobbying efforts, with federal lobbying spending reaching $3.53 million by 2025. It has also established an organization to combat state-level AI legislation and invested an additional $50 million to create a super PAC, aiming to build long-term political influence.
With the slogan of supporting small technology startups, federal legislation becomes the next battleground.
a16z has packaged its policy roadmap as the "Little Tech Agenda," aiming to secure a more lenient regulatory environment for startups. However, outside observers point out that a16z also holds shares in large companies such as SpaceX, xAI, and Meta, which contradicts its claim of "supporting small startups."
Next, a16z has proposed a federal-level AI legislation blueprint, advocating for model transparency and enhanced protection for children using AI, with the core direction of "punishing abusers rather than directly regulating developers." However, AI safety groups believe that the relevant content is too symbolic and has limited control over substantive risks, and that future federal AI legislation is bound to become a highly politicized battleground.
This article, "Silicon Valley Venture Capital Forward Decision Circle! A Comprehensive Guide to How a16z Influenced Trump's AI Policy," first appeared on ABMedia ABMedia .
