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

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Elon Musk is not the only billionaire that is power over federal agencies that manage its business. Since Donald Trump took over, more than three dozen employees, allies, and Musk investors, Peter Thale, Mark Anderson, and Palmer Loki have played a role in federal agencies, which helps their companies help billions of agreements in agreements.

Following the inauguration of Trump in January, companies have submitted more than a dozen federal agreements by Musk, Thale, Anderson, and Loki’s ownership, or invested. Wall Street Journal Analysis. And they are doing billions more.

Appointments, which are in departments that give, regularly and awards to four men’s companies, raise several red flags. They can violate the rules of conflict interests or government ethics regulations, both of which forbid federal employees from using a public office for private benefits.

And although installing reliable allies in government roles is not uncommon, the Musk network has gone unusual rate and scale. Tech Crunch has reported on all before People in the universe of Musk Who have joined the Dodge with him, where he has closed the federal agencies and reduced the tasks working in the departments that manage his business. At least 19 others With the Silicon Valley contacts, they are founders or investors, have also joined the Dodge.

“Trump’s second administration is actually the first in recent years, which has not implemented any additional ethics security measures on high -level appointments,” Daniel Winner told Tech Crunch, director of the Brennan Center’s election and government program. It noted Trump fired Director of the Office of Government Ethics and 17 Inspectors General who took office immediately. Later, serve as a watchdog for fraud and abuse.

“This certainly increases the risk that people working on your affairs, at least indirectly, work on their lower lines,” said Weener. “But this is a long -term problem in our government that is not unique to this administration.”

Innovation vs. Accountability

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Peter Thame BitCoin speaks during the 2022 conference.Image Credit:Marco Bello / Getty Images

Some people may argue that it makes sense for employees and colleagues of Musk, bags, Anderson, and Loki to join government agencies. Their insiders are talented individuals who are behind the government’s real advanced technology, and they understand how quickly innovate and fight globally.

More serious questions arise when kindness pose a risk of harming competition, when a policy is formulated or destroyed to protect the domination of the market, or when the rules that meet the good of the people work to promote business interests.

For example, the Consumer’s Financial Protection Bureau has recently withdrawn from the acquisition of rules that restrict data brokers, despite growing concerns of privacy – a change that benefits companies involved in AI, surveillance and data analysis. Another instance is DOG firing National Highway Traffic Safety Administration staff Who investigate the safety of autonomous vehicles, including several investigations in Tesla.

“One of the structural challenges of the United States government at the moment is that we have a system in which we have a great power to form our elections and then change and formulate the government’s policy,” said Weener.

Another appointment of Silicon Valley, Mike Cruatos – who is a former bag of bags, is now heading for a technology policy for the US government. In a April speech, he talked about throwing bad rules that “weigh our innovators”, especially those who are innovating the AI.

“Many people in the Silicon Valley think that what works in Silicon Valley is also going to work to manage the United States government,” said Weiner. “And as we are now seeing, the danger is that many people are going to hurt because of their assumptions.”

He added, “The fact is that after the failure of five other people, you started a successful start. This does not necessarily mean how you will run the social security administration.”

A network and out -of -payment

Mark Anderson, co -founder and general partner of Anderson Horwiots.Image Credit:David Paul Morris / Bloomberg / Getty Images

All businesses between Musk, bag, Anderson and Loki are concerned. Musk’s Space X was supported by the founders of the bag and the A16z of Anderson (who had also invested in X and X). The two VCs also supported Loki’s defensive start, Andorel.

The overlaping network of founders, funders and interior extends to several federal agencies. And in many cases, those agencies are launching billions of companies in federal agreements.

The journal found that people from Washington, who belong to the Musk network, were in more than a dozen agencies from the Executive Office of Tesla, X, and SpaceX, the President’s Executive Office and the Office of Personal Management.

SpaceX employees are also among the agencies that can provide a new business to the company. For example, the journal reports that theodore Malaska, senior engineer of SpaceX, received a moral exemption in February, which allows him to get a temporary job in the Federal Aviation Administration while working in the rocket company. FAA has not yet given any contract to Space X, but Malaska said on x The agency has used a star link to upgrade the weather conditions in Alaska.

Space X is also an important trading provider who takes staff and cargo to NASA. In spite of national security concerns – such as the company Secret backdoor for Chinese investment And The use of drug drug use is reported – Space X won in April 9.9 Billion A multi -year agreement of $ 13.7 billion with the US Space Force to launch the Pentagon missions. DOD, who is currently a star link user, also plans to buy Space X’s Starshield SatelliteA military version of the Internet satellite.

According to the Wall Street Journal, employees of the bag -backed firms have played a role in the Department of State, Office of Management and Budget, Health and Human Services, and Social Security. Since 2020, the Planner of the Department has already been given about $ 376 million since 2020. In 2024, the company was also Award At least 2 1.2 Billion I Defense Department Contract In 2024 and is in the race Another million 100 million contract.

Andorel, Planner, and Space X recently proposed a billions of dollars for Trump’s “Golden Dome” missile defense program, which will also increase the current endorous agreements with the US military. Recently, according to the Journal of Andorr and Microsoft, the AR headset took up a contract up to $ 2021 billion to produce the AR headset.

Michael Obadal, an endorous executive, has been nominated for a high role in the Department of Defense. In the revelation of his ethics, he said he would do Maintain its Anduril stock If appointed.

The Tech Crunch has reached Andorrhel, Anderson Horwiots (A16Z), Planner, and Space X for comment.

“The concentration of such private wealth and political power is eventually a threat to our economy,” said Weiner. “Since instead of making decisions of the government, to promote competitiveness, to promote economic growth, you run the real danger that government decisions will be formed to protect specific companies and special industries from complete economic competition.”

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