Elon Musk and Other Tech Leaders Are Now Backing Trump—Here’s Why

2024-08-12

The 2024 presidential race has been shaken by several radical events in the last two weeks, and billionaire leaders in Silicon Valley are responding in seemingly unexpected ways. 

Silicon Valley Voters

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For decades tech billionaires and Silicon Valley CEOs have positioned themselves across the political spectrum, from Democrat to Republican to Libertarian – and beyond. 

Shifting Political Focus

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However, in the last month, it seems as if tech billionaires across the board have begun to shift their political focus. Now, more and more Silicon Valley magnates are throwing their support behind Republican presidential nominee Donald Trump, and his freshly-picked VP JD Vance. 

What’s Going On?

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What’s going on, and why are so many people in this powerful group flocking to the former president? And are these new political affiliations as common as they seem?

Musk Endorses Trump

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It began last week when Tesla CEO and X owner Elon Musk announced his endorsement of Trump following the attempted assassination of the presidential candidate at a Pennsylvania campaign rally. 

$45 Million Per Month Donation

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Musk then followed it up by donating $45 million a month to a super political action committee that directly supports Trump, until the elections in November.

Earlier Donations

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Fellow PayPal co-founder, Ken Howery, donated even earlier, sending $1 million to the same super PAC last month.

Others Follow

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In the days following the assassination attempt, several other leading tech figures took Musk’s lead and decried the event before endorsing Trump’s candidacy themselves. 

Growing List of Supporters

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Venture capital billionaires Marc Andreessen and Ben Horowitz announced their intentions to vote for Trump just one day after Musk’s announcement. Cofounder of data mining company Palantir Joe Lonsdale, venture capitalist David Sacks, and major tech investor Doug Leone have also made contributions to Trump’s campaign.

“Come On in”

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Sacks, a former supporter of Democrat Hillary Clinton, has vocalized his support online, urging his tech peers to join the growing list of Silicon Vallet Trump supporters. “Come on in, the water’s warm,” he wrote in a post on X.

President or VP?

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However, it appears this sudden shift may have less to do with Trump himself, and more to do with his new 2024 running mate, JD Vance. 

The New Vice President

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Vance accepted the GOP nomination for Vice President on Wednesday, after two years of serving as Senator for Ohio. While he is known as an author and former Marine, he also worked for the Washington, D.C.-based investment firm Revolution LLC.

Narya Capital

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In 2019 Vance co-founded venture capital firm Narya Capital with financial backing from Andreessen, former Google CEO Eric Schmidt, and Paypal co-founder Peter Thiel.

A Good Sign for Tech Companies

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Vance’s nomination was taken as a very good sign for Silicon Valley, and well received by many investors and CEOs. His tech-positive stance and industry connections make him more receptive to AI, cryptocurrency, and other topics that his peers take a harsher view on. 

“Former Tech VC in the White House”

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Founders Fund partner Delian Asparouhov took to X to share his enthusiasm over the nomination, writing “WE HAVE A FORMER TECH VC IN THE WHITE HOUSE. GREATEST COUNTRY ON EARTH BABY.” The aforementioned Sacks also praised the decision, calling Vance an “American patriot.”

“The First Crypto Administration”?

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“President Trump and Vice President Vance will be the first crypto administration and will assemble the brightest minds in tech, AI, quantum computing, crypto, defense, transportation, and biotech to create a renaissance in American dynamism and innovation,” said Shervin Pishevar, the managing director of the investment platform EdisonAlpha Fund. 

Not As Many As You Think

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Some experts and analysts have other theories on the subject. For example, Jeffrey Sonnenfeld, dean for leadership studies at the Yale School of Management, believes that reports of widespread Trump support in the tech world have been largely overblown.

“A Non-Existent Surge”

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“A mythology has been marketed by partisans suggesting a non-existent surge of tech titans abandoning the Democratic party support in a rush to support the Trump/Vance campaign,” Sonnenfeld told reporters at CNN.

Most Tech Figures Don’t Support Him

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“The truth is that most leading tech figures do not support Trump/Vance and those prominent ones who do, were there years ago as well,” he added.

Amplified by Social Media

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It appears that the actual amount of leading tech figures who are endorsing Trump and donating to his campaign could be amplified and exaggerated through social media.

More Dislike Than Like

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And several of those people likely aren’t doing it out of love for Trump. It is more likely a product of distaste for the Biden administration, including its policies and approach to the tech industry, and support of the tech-adjacent Vice President running beside him.

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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.