Donald Trump, the former president of the United States, has gained unexpected support from tech leaders as his potential return to the White House looms. Elon Musk, the world’s richest person, recently endorsed Trump and became involved in fundraising efforts for the former president. This move follows a growing trend of support from influential venture capitalists and tech leaders, including former Democratic donor Allison Huynh, investors Marc Andreessen and Ben Horowitz, and the Winklevoss twins. This shift in support from the tech world is notable considering many companies distanced themselves from Trump after the 2021 US Capitol riot.
In Silicon Valley, where previously supporting Republican causes like a ban on gay marriage could cost someone their job, the change in sentiment towards Trump is striking. For many individuals, expressing support for Trump in the past would have been deemed socially unacceptable. However, attitudes have shifted, and individuals like Nicholas Longo of Fortuna Investors, a wealth management firm, feel more comfortable openly supporting Trump now than they did before.
The shift in political winds has been evident on social media, with Elon Musk and investor David Sacks regularly criticizing President Joe Biden. However, their decision to financially support the Trump campaign has the potential to expand their influence beyond their usual circle, with significant implications for the upcoming election. Trump’s newfound support from tech leaders has helped him close the fundraising gap with Biden, with Sarah Bryner, research director at OpenSecrets, noting that his campaign is in a completely different position than it was just a few months ago.
While support for Trump is not unanimous among tech leaders, his endorsements from influential figures in the industry indicate a broadening appeal. Sal Russo, a veteran Republican consultant, believes that Trump will perform better in the upcoming election than he did in the past. However, it is unlikely that he will win over heavily Democratic areas like Santa Clara County. Nonetheless, the support from tech leaders suggests that Trump’s appeal is expanding beyond his core base of supporters.
One reason for the tech industry’s gravitation towards Trump is concerns about the Biden administration’s approach to technology. Many tech leaders worry about the administration’s crackdown on cryptocurrency and its cautious stance on artificial intelligence. A recent executive order requires companies to comply with government AI safety standards, a move that has raised concerns among those in the tech industry. Investors like Marc Andreessen and Ben Horowitz, who are heavily involved in crypto and AI, argue that bad government policies are the biggest threat to the tech industry and that it is time to take a stand.
Elon Musk’s endorsement of Trump may seem surprising considering his previous history of shunning political donations. In 2017, he quit a White House business council due to disagreements with Trump’s climate change policies. Additionally, Musk’s electric car company, Tesla, has been the subject of criticism from Trump in the past. However, Musk has long been critical of financial regulators and has ramped up his criticism of Biden over the past two years. On social media, Musk has also waded into various debates on topics like Covid lockdowns, the war in Ukraine, China policy, and transgender issues. As the owner of SpaceX, which does significant government business, Musk also has to consider his relationship with a potential Trump administration.
The shift in support from the tech world to Trump can be attributed to self-interest. Many tech leaders believe that Trump will be more hands-off when it comes to regulating technology, especially in the areas of cryptocurrency and artificial intelligence. Biden’s proposed new taxes on multimillionaires and unrealized capital gains have also alienated some in the tech industry. Additionally, the Biden administration’s pursuit of tech companies in anti-monopoly and other cases has further strained their relationship. Some believe that tech leaders are supporting Trump as a “bitcoin play,” betting on increased cryptocurrency value due to high inflation and political chaos that would potentially result under a Trump administration.
Although the tech industry generally aligns with Democrats on social issues like gay marriage and abortion, their opposition to regulation has historically pushed them towards the Republican Party. However, issues like policing, schooling, and transgender rights have emerged as significant social issues in recent years, causing some in the tech industry to swing towards the Republican Party. While the majority of venture capitalists may still be center-left, there is a growing movement towards the Republican Party among tech elites.
Trump’s stance on tech has evolved during his time in office. While he initially took an interventionist approach, engaging in a trade war with China, ordering a TikTok ban, and filing anti-monopoly lawsuits against tech companies, he has since moderated or reversed his positions on some tech issues. Trump now owns a social media platform and has shown signs of shifting his stance. Additionally, his choice for vice-president, JD Vance, previously worked in venture capital and received support from PayPal’s Peter Thiel during his senate campaign. However, distinguishing between the interests of “big” tech and “little” tech may prove challenging when it comes to governance.
Some experts argue that Trump’s success in the business world stems from positioning himself as more moderate than other conservatives on social issues like abortion. Despite removing protections from Roe v Wade, Trump has rejected the notion of a national ban and believes the matter should be left up to the states. However, some caution that Trump’s relatively moderate campaign promises in 2016 ultimately gave way to more extreme policies once in office. These policies damaged his public approval and strained Republican ties to Wall Street, a traditional source of support for the party. It remains to be seen whether Trump’s more eccentric policy ideas will or will not come to fruition.
Garrett Johnson, co-founder of the Foundation for American Innovation and an executive at a venture-backed tech firm, believes that as time has passed, more tech and business elites have come to agree with Trump’s views. Johnson believes that Trump’s focus on China as a threat to the United States resonated with individuals in the tech industry. While they may not agree with Trump on every issue, they believe he was right on many key points.
In conclusion, the unexpected support for Donald Trump from tech leaders represents a significant shift in sentiment within the industry. The endorsement of influential figures like Elon Musk has helped Trump close the fundraising gap with Joe Biden, indicating a newfound appeal to the tech world. Concerns about the Biden administration’s approach to technology, including its crackdown on crypto and its cautious stance on AI, have driven tech leaders towards Trump. While the tech industry’s support for Trump is motivated by self-interest, it also reflects a broader movement towards the Republican Party in the industry. However, the long-term implications of this shift remain uncertain, as Trump’s policies and promises have proven to be unpredictable in the past.
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