I recently took a deep dive into a detailed report on a16z’s investment portfolio, and honestly, it’s pretty shocking.

While this top-tier venture capital firm pours tens of millions of dollars into lobbying the U.S. government to push for AI deregulation, its investment portfolio is packed with all kinds of morally gray projects—from AI tools that teach people how to cheat in job interviews and on dates, to companies that use “phone walls” to manufacture fake social media accounts to trick consumers, to marketing-bot systems for fake health products targeting the elderly.

What’s most unsettling is the AI companion space. On the Character AI platform invested in by a16z, a 14-year-old boy died by suicide because he became extremely dependent on a chat bot. Even when he said he was hesitant, the bot replied, “That’s not a reason not to do it.” And on another platform, Civitai, which hosts more than 35,000 deepfake models—96% targeting identifiable women—the platform has also received 178 reports regarding AI-generated child sexual abuse content.

The gambling sector follows the same playbook. Several companies invested in by a16z exploit regulatory loopholes to offer disguised gambling services to users who should be protected—some targeting 18-year-olds, and others targeting people facing financial hardship—using a “gamified” approach to package gambling as a financial management tool.

Consumer finance is even darker. Synapse, an a16z-backed company that manages billions of dollars in customer funds, saw between $65 million and $96 million in customer deposits disappear into thin air when it went bankrupt. Then there’s LendUp, which claims to be a “social responsibility alternative” to usury; it was ultimately found by the CFPB to repeatedly deceive consumers and was forced to shut down.

Even more outrageous, in a 2023 statement, a16z founder Marc Andreessen listed “risk management” and “technology ethics” as “enemies,” claiming that AI regulation is “the cornerstone of new authoritarianism.” At the same time, a16z has already placed multiple allies inside the government—including, now, the White House’s AI czar and several former partners.

Polling shows that 58% of Americans support strengthening AI regulation, but a16z is spending tens of millions of dollars to ensure the opposite policy gets introduced. They’re writing the rules before society fully realizes the risks.

Looking at all this information, I can’t help but wonder: what does it mean—for the entire industry and the public interest—when a venture capital firm that invests in so many “quick actions, breaking conventions” projects now also controls the public discourse around AI regulation? This isn’t just a matter of business decisions; it’s about the fundamental direction of AI development over the next decade.