Marc Andreessen and Ben Horowitz, co-founders of prominent venture capital firm Andreessen Horowitz (a16z), have publicly endorsed former President Donald Trump for his supportive policies toward technology, including crypto and AI.
The two founders announced their support on July 17 during an appearance on “The Ben & Marc showpodcast. The decision marks a major departure for Andreessen, who has a history of supporting Democratic candidates.
The endorsement is based on the belief that Trump’s policies are more beneficial to the technology sector and comes amid growing support for the former president in Silicon Valley.
Horowitz acknowledged the controversy their political position could cause, saying:
“I wish we didn’t have to choose sides.”
However, he also emphasized that the future of their company and American technology is at stake. The co-founders further argued that technological innovation is crucial for the US to maintain its economic and military dominance.
Founded fifteen years ago, Andreessen Horowitz manages more than $42 billion in assets, making it one of the largest venture investors in Silicon Valley.
Biden policies under fire
The co-founders of a16z said during the podcast that Trump’s attitude toward technology is generally more favorable than that of the Biden administration, especially when it comes to artificial intelligence (AI) and crypto regulation.
They also criticized the current regime for excessive regulations and unnecessary taxes that hinder the growth of startups. Andreessen expressed particular concern about the Biden administration’s approach to AI regulation, fearing it could disadvantage the US relative to global competitors.
Horowitz recounted a recent dinner with Trump, in which the former president emphasized the importance of winning the AI race against China. He said:
“What he said to us is: ‘[AI] It’s very scary, but we absolutely have to win, because if we don’t win, China wins.’”
The co-founders also praised Trump’s support of the crypto sector, contrasting what they described as punitive tax policies under Biden.
They added that they specifically oppose the proposal to tax unrealized capital gains, arguing that it would hurt startups by taxing them on valuation increases that are illiquid.
Shift from democratic roots
Marc Andreessen’s support for Trump signals a major shift from his long-standing Democratic leanings. Historically, he has supported a range of Democratic candidates, including Bill Clinton, Al Gore, John Kerry, Barack Obama and Hillary Clinton – reflecting his alignment with their past policies.
However, his current support for Trump is driven by the belief that the former president’s policies better support the growth and innovation of the technology industry.
Andreessen and Horowitz emphasized that technological prowess, along with economic strength and military capability, has been essential to American supremacy over the past century.
They attributed America’s technological advantage to its peaceful victory over the Soviet Union during the Cold War, underscoring the strategic importance of technology to national security.