Co-Founder of Venture Capital Firm Andreessen Horowitz Snubs Biden's AI Regulations
Marc Andreessen, co-founder of Andreessen Horowitz, has expressed strong opposition to the Biden administration's proposed AI regulations, citing concerns over their potential to stifle innovation.
After attending a series of meetings with government officials in May 2023, Andreessen was alarmed by plans to concentrate AI development within a few large companies, leaving little room for startups.
He recalled the statement:
“Don't fund AI startups. That's not something that we're going to allow to happen.”
Billionaire Marc Andreessen describes a “horrifying” meeting with the Biden Administration that convinced him he had to endorse Donald Trump
🚨 Biden Admin was going to control AI, only allow 3 companies to create AI, crush all competitor companies then classify the physics… pic.twitter.com/KJmGcfcZyM
— Wall Street Apes (@WallStreetApes) December 15, 2024
He described the experience as "horrifying," learning that the government intended to restrict AI innovation to two or three major firms closely aligned with governmental interests.
These companies would be insulated from competition and directed by the government in their AI endeavours.
Alarmed by these developments, Andreessen chose to endorse Donald Trump, believing Trump's approach would foster more innovation by limiting government interference in the tech sector.
Policies in Place to Limit AI Innovation?
Andreessen was deeply alarmed by the Biden administration's proposal to restrict access to fundamental AI technologies, drawing parallels to the Cold War era when scientific research was classified and kept from the public.
In discussions with government officials, Andreessen was shocked to learn that AI could be "classified" in a similar way, potentially stifling open research and development..'
This raised serious concerns for Andreessen, particularly as his venture capital firm has invested in several AI startups, including Elon Musk's xAI, Mistral AI, and Character.AI.
He feared that such a move would not only jeopardise his business interests but also threaten the broader tech innovation ecosystem.
Andreessen sees the government's stance as a shift toward a more controlled economy that could undermine the entrepreneurial spirit of American business.
🚨"The Biden administration tried to kill AI. They wanted to put it in a headlock by only letting a small number of companies participate. They create a cartel of permitted companies and prevented new companies from getting involved. This is called regulatory capture." pic.twitter.com/mgMwAgQCVg
— Autism Capital 🧩 (@AutismCapital) November 27, 2024
While the Biden administration issued an executive order in October 2023 urging companies to follow voluntary AI safety guidelines, Andreessen believes the real agenda is far more restrictive.
He contends that these policies, which reflect an anti-capitalist approach, would stifle innovation.
In response, Andreessen chose to support Trump, viewing him as a leader who champions less government control and more freedom for private companies to drive technological advancement.
Is this why until now, many industry leaders are stepping forward in support of crypto-friendly Trump?