Former President Donald Trump was once unwelcome in Silicon Valley.
In 2016, Silicon Valley elites predominantly funded Democratic nominee Hillary Clinton. By 2020, their spending to defeat Trump increased. The few supporters, like venture capitalist Peter Thiel, co-founder of PayPal and Palantir, faced significant backlash and often stayed silent to protect their businesses.
However, since the last election cycle, things have shifted.
Recently, the Wall Street Journal reported that Elon Musk, after endorsing Trump, planned to contribute $45 million a month to a pro-Trump super PAC starting in July. Musk seemed to deny this report with a meme on X stating: “FAKE GNUS.”
Prominent tech investor and entrepreneur David Sacks, who had previously criticized Trump for the January 6 Capitol insurrection, has now endorsed him, even speaking at the Republican National Convention in Milwaukee.
Andreessen Horowitz, one of Silicon Valley’s largest venture capital firms, also announced significant donations to pro-Trump PACs.
“The Blue Wall of tech is crumbling before our very eyes,” wrote Ryan Selkis, founder and CEO of crypto research firm Messari, on X last month.
While Selkis’s claim might be exaggerated, as Silicon Valley remains largely Democratic, tech elites supporting Trump are now more open and less fearful of ostracism.
Why Some Silicon Valley Leaders Are Backing Trump
Silicon Valley isn’t experiencing a major rightward shift.
In 2022, over half of voters in San Mateo and Santa Clara counties (which include Silicon Valley) were registered Democrats, a trend stable since the 1970s. The number of voters with no party preference has grown, while Republican voter numbers dropped to about 15 percent in 2022.
Silicon Valley venture capitalists continue to support Democrats at a higher-than-average rate compared to the last ten election cycles. A recent Wired analysis found Democrats received $2 for every dollar Republicans received from the 20 firms making the most political contributions.
This aligns with a 2017 study showing wealthy technologists support many liberal policies: wealth redistribution, abortion rights, LGBTQ+ rights, and immigration.
However, tech leaders have historically opposed government interference in their businesses, which might explain some of the current support for Trump.
President Joe Biden’s administration has taken a tough stance on Big Tech, filing antitrust lawsuits against Apple, Google (Alphabet), Meta, and Amazon. Following the collapse of crypto exchange FTX and its founder Sam Bankman-Fried, the administration has also targeted crypto companies like Coinbase and Binance with lawsuits and stricter regulations.
Trump’s running mate, J.D. Vance, shares some of Biden’s views, praising FTC head Lina Khan for the antitrust suits. Despite this, tech titans are supporting the Republican ticket.
Andreessen Horowitz had previously stated that government regulation influences their political contributions. “We are non-partisan, one-issue voters: If a candidate supports an optimistic technology-enabled future, we are for them. If they want to choke off important technologies, we are against them,” the firm announced in December.
Founders Marc Andreessen and Ben Horowitz recently posted a video explaining their support for Trump, emphasizing the stakes for their business and America’s technological future.
Crypto leaders, long opponents of further industry regulation, have also increased their contributions to Republicans. The crypto PAC Stand With Crypto has identified Trump and Robert F. Kennedy as preferable to Biden.
Beyond regulation, some Silicon Valley billionaires are more vocal about supporting Trump because they can do so without facing boycotts or significant negative press. Musk, who has always been somewhat contrarian, has become more politically active online since acquiring Twitter and renaming it X. Despite initial backlash costing him users and advertisers, his Trump endorsement has not faced similar repercussions.
Biden’s Fundraising Challenges
The support Trump is receiving from Silicon Valley’s wealthy should concern the Biden campaign.
As of the last campaign finance reports through the end of May, Trump had more cash on hand than Biden: $116.6 million to Biden’s $91.6 million.
Biden’s fundraising difficulties have likely increased since then. Following a poor debate performance last month, some donors have called for Biden to drop out and have paused contributions, while others are waiting for assurance he won’t be replaced by another Democrat.
Trump has capitalized on an assassination attempt against him for fundraising, with his campaign website featuring a photo of him with a bloodied face at a rally where he was shot in the ear.
If Musk indeed plans to contribute millions monthly to Trump’s campaign through the election, it will be challenging for Biden to keep pace.