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This DOJ probe highlights growing regulatory scrutiny over conflict-of-interest structures in venture capital when board seats span competing AI infrastructure firms. The investigation specifically targets whether a16z's dual representation at Databricks and Fivetran violates antitrust laws regarding the sharing of sensitive strategic information between rivals. For investors, this signals that traditional "Chinese wall" defenses may be insufficient if regulators view concurrent board service itself as an inherent barrier to fair competition in high-value AI markets.

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DOJ’s probe into Andreessen Horowitz over board seats baffles VCs

TechCrunchAugust 18, 20262 min read

Since portfolio companies often pivot and expand into competing markets, investors view occasional conflicts of interest as unavoidable for large VC firms.

The Justice Department has launched a probe into Andreessen Horowitz regarding the firm’s partners serving on the boards of competing companies, Bloomberg reported. The nearly year-long investigation focuses specifically on the firm’s board seats at Databricks, which is valued at $190 billion, and Fivetran, which combined…

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