Investigation: a16z's 18 most controversial bets — and its push to shape AI policy

Andreessen Horowitz (a16z), the venture firm whose co-founder Marc Andreessen is pushing to shape US AI policy, holds a portfolio full of companies that have exploited legal loopholes, built products harmful to the public and broken the law, according to an investigation published by Model Republic, a publication from The Midas Project.

What the review covers

The report, written by Tyler Johnston, surveys 18 of the firm's most notorious investments. The authors stress it is not a complete overview of a16z's portfolio, but a pattern of behaviour that sits behind hundreds of millions of dollars of investment. A16z did not respond to a request for comment for the report.

Bot farms and products built on deception

One example is Doublespeed, which took $1 million from a16z through its Speedrun programme in October 2025. The company sells access to "phone farms" and runs thousands of fake accounts so that platforms and users treat AI-generated advertising as genuine human content. A December 2025 hack of the company's backend exposed more than 1,100 phones and over 400 TikTok accounts; most posts promoted products without disclosing that they were paid advertising, breaching both TikTok's community guidelines and FTC disclosure rules.

The portfolio also includes Cluely, whose $15 million Series A a16z led in June 2025. The startup first marketed itself as a tool for cheating in interviews and exams, then softened its positioning and repositioned as an AI meeting assistant.

Gambling platforms and legal loopholes

A separate section of the investigation covers gambling companies that use sweepstakes-style loopholes. Arizona's Department of Gaming issued a cease-and-desist order to Edgar's BettySweeps in August 2025, and the game is now restricted in 15 states. Cheddr targets 46 states even though online sports betting is legal in roughly 34. A16z co-led a $300 million Series D for Kalshi and invested more than $60 million in Sleeper, which faces class-action lawsuits in California and Massachusetts.

Who writes the rules

The investigation highlights the firm's parallel push into policy: a16z helped launch a $100 million super PAC, former partners took key government roles, and an executive order it supported seeks to undermine state AI laws. In the authors' reading, the same companies stand to benefit from the light-touch regulation the firm advocates.