Andreessen Horowitz (a16z), a major venture capital firm co-founded by Marc Andreessen, is investing in startups that exploit legal loopholes and create products with significant societal harms, according to an investigation by The Midas Project.
The firm’s portfolio includes companies operating bot farms, promoting AI cheating tools, hosting deepfake platforms, and running deceptive marketing schemes. According to the report, a16z invested $1 million in Doublespeed via its Speedrun program in October 2025. Doublespeed operates what it describes as “the only VC-backed bot farm in America,” selling access to thousands of fake social media accounts designed to make AI-generated advertisements appear to come from real people.
Doublespeed’s business model relies on using real phones to create and manage fake accounts that imitate human behavior before posting deceptive content. The company targets older users, according to founder Zuhair Lakhani, who stated in a podcast interview that elderly people are “the best niche to hit with AI content” because they are less likely to recognize AI-generated misinformation. The accounts promote products ranging from supplements to medical devices without disclosing paid relationships, violating both TikTok’s Community Guidelines and FTC regulations.
According to the report, a December 2025 security breach exposed Doublespeed’s backend, revealing over 1,100 phones and more than 400 TikTok accounts operated by the company. One account impersonated a UCLA student promoting a herbal supplement while criticizing the supplement industry. Another created roughly 200 posts featuring an AI-generated woman claiming to have health conditions and promoting a foam roller.
The investigation identifies a broader pattern. According to the report, a16z’s portfolio also includes “an AI companion app linked to suicide and disturbing behavior toward children,” “a platform hosting thousands of deepfake models — 96% targeting identifiable women,” and “gambling platforms that attempt to subvert existing laws.”
While these companies operate, a16z is simultaneously spending tens of millions of dollars to shape AI policy, according to the report. The firm helped launch a $100 million super PAC, saw former partners take government roles, and successfully pushed for an executive order attempting to undermine state AI laws. A16z did not respond to a request for comment.
Key facts
- a16z invested $1 million in Doublespeed in October 2025, a company operating bot farms to create fake social media accounts
- Doublespeed’s leaked data exposed over 1,100 phones and 400+ TikTok accounts promoting products without required disclosures
- The accounts targeted older users, who research shows are less likely to recognize AI-generated misinformation
- a16z’s broader portfolio includes companies linked to deepfakes, AI cheating tools, and fraudulent fintech schemes
- The firm is simultaneously spending tens of millions on AI policy initiatives while backing these companies