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American Focus > Blog > Tech and Science > How Silicon Valley’s influence in Washington benefits the tech elite
Tech and Science

How Silicon Valley’s influence in Washington benefits the tech elite

Last updated: May 16, 2025 8:00 pm
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How Silicon Valley’s influence in Washington benefits the tech elite
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Influence of Tech Billionaires on Federal Agencies

Elon Musk is not the only tech billionaire who wields power over federal agencies regulating his businesses. Since Donald Trump’s presidency began, more than three dozen individuals connected to Musk, Peter Thiel, Marc Andreessen, and Palmer Luckey have assumed roles in federal agencies, influencing the direction of billions in contracts towards their companies.

According to a recent analysis by the Wall Street Journal, companies affiliated with Musk, Thiel, Andreessen, and Luckey have secured over $6 billion in federal contracts since Trump’s inauguration. This trend raises concerns about potential conflicts of interest and violations of government ethics regulations, as federal employees are prohibited from using their positions for personal gain.

Innovation vs. Accountability

While it may seem logical for individuals associated with Musk and other tech giants to join government agencies due to their expertise in cutting-edge technology, the potential for favoritism and market manipulation cannot be ignored. Instances where policies are shaped to benefit certain companies, rather than serve the public interest, raise serious ethical questions.

For example, the Consumer Financial Protection Bureau’s decision to backpedal on regulations concerning data brokers, despite mounting privacy concerns, could disproportionately benefit companies involved in AI, surveillance, and data analytics. Similarly, the dismissal of National Highway Traffic Safety Administration staff members investigating autonomous vehicle safety, including probes into Tesla, highlights the potential conflicts of interest at play.

Mike Kratsios, a former employee of Peter Thiel, now heads technology policy for the U.S. government. In a recent speech, Kratsios emphasized the need to remove burdensome regulations hindering innovation, particularly in the AI sector. However, critics warn against assuming that strategies successful in Silicon Valley can seamlessly translate to governing a nation.

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A Network Inside and a Payoff Outside

The interconnected web of businesses involving Musk, Thiel, Andreessen, and Luckey extends into various federal agencies, with many employees holding influential positions. This network has facilitated the allocation of billions in federal contracts to affiliated companies, raising concerns about fair competition and government integrity.

For instance, SpaceX, backed by Thiel’s Founders Fund and Andreessen’s a16z, has secured lucrative contracts from the U.S. government, including a multi-year deal with the U.S. Space Force worth billions. Similarly, Palantir, funded by Thiel, received substantial contracts from the Department of Health and Human Services and the Department of Defense.

Anduril, another company linked to this network, has collaborated with Microsoft on a multi-billion-dollar defense project and is in the running for additional contracts. The appointment of individuals connected to these companies in key government positions further blurs the line between public service and private interests.

This concentration of wealth and political power among a select group of tech billionaires poses significant risks to the economy, potentially prioritizing the protection of specific companies over fostering healthy competition and economic growth. As the government’s decisions become increasingly influenced by private interests, the need for transparency and accountability in regulatory processes becomes more crucial than ever.

TAGGED:BenefitsEliteInfluenceSiliconTechValleysWashington
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