Silicon Valley Venture Capital Moves into Decision-Making Circles! An article explaining how A16z influences Trump's AI policies

In the United States, as AI policies shift toward deregulation and increased competitiveness, Silicon Valley venture capital giant Andreessen Horowitz (a16z) has quietly moved into the core of Washington decision-making. Several White House and Congressional staffers have revealed that when evaluating AI policies, a16z has almost become a preferred outside advisor, even described as having “near veto power” on certain issues. It is also regarded by AI regulatory groups as one of the most influential lobbying forces in Washington in recent years. Why can a single venture capital firm hold such a critical position in AI policy discussions? This article will explore the reasons.

Benefiting from the Trump administration’s AI-friendly policies, a16z’s investments have rapidly expanded

In recent years, a16z’s capital scale has grown quickly. As of January this year, it managed approximately $90 billion in assets, making it one of Silicon Valley’s largest venture capital firms.

The firm recently completed a $15 billion fundraising round, setting a record high, and announced plans to heavily invest in AI startups and platforms, including generative programming startup Cursor and AI ranking platform LM Arena. It also holds equity stakes in major tech companies like OpenAI and Meta. Consequently, a16z’s related investments have benefited from the current Trump administration’s AI-friendly policy environment.

Opposing increased AI regulation, development aligned 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, while most AI startups are small teams that cannot handle heavy regulation. Jai Ramaswamy, head of legal and policy at a16z, also pointed out that large corporations can make policy choices, but small teams lack that flexibility.

Therefore, in terms of AI regulation stance, a16z’s position aligns closely with the mainstream view within the Trump administration of “avoiding over-regulation of AI.”

Failed legislation in Congress, White House turns to executive orders

By the end of 2025, the U.S. Congress attempted to include provisions in the mandatory National Defense Authorization Act to restrict states from setting their own AI safety standards. Republican senior staffers revealed that when evaluating this strategy, the first outside advisor they consulted was a16z’s lobbying representative Collin McCune, who coordinated with White House AI czar David Sacks, House Majority Leader Steve Scalise, and Senate Commerce Committee Chair Ted Cruz.

The legislation ultimately failed. Trump then issued an executive order to try to limit states from establishing AI safety safeguards. The content of this order also echoed a16z’s statement that “potential commercial provisions could restrict state governments’ authority over the national AI market.”

Increased lobbying funds, shaping political influence

a16z co-founder Marc Andreessen has close ties to Trump. In 2024, he donated $2.5 million to Trump’s campaign and has had multiple long meetings at Mar-a-Lago. He also regularly discusses tech policy with White House Chief of Staff Susie Wiles.

He actively manages congressional relationships, attending Republican donor events and privately dining with lawmakers in Washington. In recent years, a16z has significantly ramped up political lobbying, with federal lobbying expenditures reaching $3.53 million in 2025. It also established an organization to oppose state-level AI legislation and invested $50 million in a super PAC aimed at building long-term political influence.

Promoting small tech startups as a slogan, federal legislation as the next battleground

a16z frames its policy push as the “Little Tech Agenda,” advocating for a more relaxed regulatory environment for startups. However, critics point out that a16z also holds stakes in large companies like SpaceX, xAI, and Meta, which contrasts with its “support for small startups” narrative.

Next, a16z has proposed a blueprint for federal AI legislation, emphasizing model transparency and enhanced protections for children using AI. Its core approach is “punishing abusers rather than directly regulating developers.” However, AI safety groups believe these proposals are largely symbolic and have limited practical risk management. Future federal AI legislation is expected to become a highly politicized battleground.

(a16z praises Generation Z: the rise of the AI-native generation, a new era for startups)

This article, “Silicon Valley Venture Capital Moves into Decision-Making Circles! Understanding How a16z Influences Trump’s AI Policies,” first appeared on ABMedia.