Elon Musk is not the only technological billionaire with power over federal agencies that regulate his company. Since Donald Trump took office, greater than three dozen employees, allies and Musk, Peter Thiel, Marc Andreesen and Palmer Luckey have taken a role in federal agencies, helping to direct billions in contracts for their corporations.
Holds, founded or invested by Musk, Thiel, Andreessen and Luckey collected several federal contracts with a total value of about $ 6 billion from the inauguration of Trump in January, in accordance with Wall Street Journal evaluation. And they actively strive for billions more.
These meetings that are in departments that supervise, regulate and reward the business of 4 corporations, raise a number of red flags. They could violate the regulations regarding the conflict of interest or government ethical regulations that prohibit federal employees to make use of the public office to acquire private profits.
And although it is nothing unusual to put in trusted allies in government roles, the Muska network has moved at an unprecedented pace and scale. TechCrunch previously informed about all people in the Musk universe, who joined him in the Doge, where he locked federal agencies and reduced work forces in departments that regulate his company. At least 19 others with connections from the Silicon Valley, i.e. the founders or investors, also joined the dog.
“The second administration of Trump is in fact the first in recent years, which has not imposed any additional ethical security at appointed at a high level,” said Techcrunch, director of the election and government program of the Brennan Center. He noticed it Trump shot Director of the Government Ethics Office and 17 General Inspectors who served as guards of fraud and abuse, immediately after taking office.
“Certainly, this potentially increases the risk that people are working on matters that have, at least indirectly, their lower lines,” said Weiner. “But this is a long -term problem in our government, which is not unique to this administration.”
Innovation versus responsibility
Some may argue that it makes sense that employees and associates of musk, Thiel, Andreessen and Luckey join government agencies. Their from the outside are talented individuals who are behind the newest technology, which the government really needs, and understand quickly introduce innovations and compete around the world.
More serious questions arise when favoring threatens to undermine competition, when politics is created or destroyed to guard market dominance or when the provisions that will serve public good are capable of promote business interests.
For example, the Consumer Finance Protection Office has recently withdrawn from the implementation of the rules that will limit data brokers, despite the growing problems related to privacy – a change meaning the advantages of corporations involved in artificial intelligence, supervision and data evaluation. Another example is the employees’ dismissal by Doge at the National Highway Traffic Safety Administration, who examine the safety of autonomous vehicles, including several probes for Tesla.
“One of the definition of structural challenges that the government of the United States has now is that we have a system in which the richest interests have so much power to shape our choices, and then to turn around and shape government policy,” said Weiner.
Another appointed by the Silicon Valley, Mike Katsios – a former worker of Thiel – is now a leading technological policy for the US government. In the April speech he talked about throwing out bad regulations, which “burden our innovators”, especially those that introduce innovations in artificial intelligence.
“Many people in the Silicon Valley tend to think that whatever has worked in the Silicon Valley will also work to manage the US government,” said Weiner. “And as we see now, the danger will be hurt by many people because of the assumptions they take.”
“The fact that you had a successful startup after a failure of five others does not necessarily mean that you know how to conduct social security administration,” he continued.
The network inside and the payment outside
All corporations between Musk, Thiel, Andreessen and Luckey are related. Spacex Musk was supported by the founders of Thiel and A16z Andreesen (which he also invested in X and XAI). Both of these VC also supported Anduril, a startup of Luckey’s defense.
The overlapping network of founders, sponsors and outside people extends to several federal agencies. In many cases, these agencies manage billions in federal contracts back to those corporations.
The magazine found that in Washington people from the Musk network, including Tesla, X and Spacex, are in several agencies, from the executive office of the president and the Personnel Management Office to the Department of Transport and the Energy Department.
SpaceX employees are also in agencies that might provide the company with a latest company. For example, the magazine reports that the senior engineer Spacex Theodore Malaska has slowed down from ethics in February, which allows him to take a temporary job at the Federal Aviation Administration, working at Rocket Company. FAA has not yet concluded any contracts for SpaceX, but Malaska said on x The agency used Starlink to enhance the weather system in Alaska.
SpaceX is also the foremost industrial supplier who transports the crew and load for NASA. Despite the fears related to national security – identical to the company Secret Backdoor for Chinese investments AND Reported use of Muska drugs – Spacex won in April $ 5.9 billion From a long -term agreement price $ 13.7 billion from American spatial cosmic force to launch the Pentagon mission. DOP, which is currently the customer of Starlink, also plans to purchase Starshield Spacex satellitesMilitary version of web satellites.
Employees of corporations supported by Thiel were in roles in the Department of State, Management Office and Budget, Health and Social Welfare, in addition to social security in accordance with the Wall Street Journal. Palantir Thiel has already received almost $ 376 million from 2020 from the Health and Social Welfare Department. In 2024, the company was also distinguished at least $ 1.2 billion IN Department of Defense contracts in 2024 and participates Another agreement price $ 100 million.
Anduril, Palantir and SpaceX have recently submitted a proposal for many billions of dollars for the Trump rocket defense program, which might also add existing Andurila contracts with the American army. Recently, Anduril and Microsoft took over a contract with a value of 2021 to $ 22 billion to develop AR headphone sets by magazine.
The manager of Anduril, Michael, was nominated for the foremost role in the defense department. In revealing ethics, he stated that he would do it Keep your Anduril stocks If appointed.
TechCrunch contacted Anduril, Andreessen Horowitz (A16Z), Palantir and SpaceX for comment.
“This kind of concentration of private wealth and political power is ultimately very risky for our economy,” said Weiner. “Because instead of making government decisions that are aimed at supporting competition, you support economic growth, you risk a real risk that government decisions will instead construct the protection of individual companies and individual industries against full economic competition.”