More or Less · Topics · Episode #163
The DOJ Investigates Andreessen Horowitz for... Having Conflicts of Interest
Clip from the full recording, 18:21–22:54 · download mp4 · watch at this point on YouTube
The Justice Department opens an antitrust inquiry into a16z over board seats on two competing companies (sparked by Databricks buying DBT Labs), and the group can't figure out the point -- Sam suspects a16z planted the story itself for the marketing.
Jess reports that the DOJ is investigating Andreessen Horowitz for conflicts of interest, specifically scrutinizing a venture capitalist holding board seats on two competing companies – traced back to Databricks’ acquisition of DBT Labs, first reported by The Information. Sam and Dave are baffled this is treated as a government matter at all: “no conflict, no interest” is, per Dave’s paraphrase of John Doerr, simply how venture capital has always worked. Sam pushes further – “what is the point of a private market if you can’t have conflicts of interest?” – and dismisses the inquiry as the government being “very angry that the sky is blue.”
The group can’t identify a plausible motive: Jess notes Andreessen Horowitz is close to the Trump administration, so she doubts the case goes anywhere, but calls the inquiry itself unusual – the first move like this since Eric Schmidt had to leave Apple’s board under FTC pressure. Dave and Brit float that a rival firm could be behind it (Sequoia gets floated as a joke), but Sam’s real theory is funnier and, he insists, more plausible by Occam’s razor: Marc Andreessen planted the story himself, because “we’re such a great venture capital firm that it’s a competition issue” is the best marketing a VC firm could ask for. The bit escalates into every firm wanting to be declared an “unfair monopoly,” culminating in Sam joking about trying to get AOC angry at Slow Ventures instead.
Key points
- DOJ is investigating a16z for conflicts of interest tied to VC board seats on competing companies, stemming from Databricks' acquisition of DBT Labs.
- Sam and Dave: conflicts of interest are inherent to how venture capital works; there's nothing here for the government to fix.
- Jess: a16z's closeness to the Trump administration makes her skeptical the case goes anywhere, though the inquiry itself is unusual -- the first like it since Eric Schmidt left Apple's board under FTC pressure.
- Group can't identify who filed the complaint or why; Sequoia gets floated jokingly as a possible rival instigator.
- Sam's real theory: Marc Andreessen planted the story himself as marketing -- being called an antitrust risk signals dominance.
- The bit expands into every AI/VC firm wanting to be declared a monopoly as free marketing, echoing the "we're so powerful, regulate us" strategy already used by AI labs.
- Sam, joking: wants to provoke AOC into declaring an "egg-freezing monopoly" against Slow-backed companies for the marketing value.
Where they landed
Quotes
“What is the point of a private market if you can't have conflicts of interest?”— Sam
“What's the famous John Doerr-ism? No conflict, no interest.”— Dave
“I bet Andreessen -- the only Occam's razor says the only plausible answer is that Mark Andreessen actually planted this because it's great marketing.”— Sam
Suggested tweets
The DOJ is investigating a16z for having board seats on competing companies. Dave Morin's response: “What is the point of a private market if you can't have conflicts of interest?”
Tweet this →Sam Lessin's Occam's razor theory on the a16z antitrust probe: Marc Andreessen planted the story himself. “It's great marketing.”
Tweet this →Every AI lab wants to be called dangerously powerful. Now VCs want to be called an illegal monopoly. Same marketing playbook, new industry.
Tweet this →All topics · Full episode #163 + transcript · Subscribe on YouTube · Spotify