How the tech right wants to run America

Presented by Instagram: How the next wave of technology is upending the global economy and its power structures
Dec 10, 2024 View in browser
 
POLITICO Digital Future Daily Newsletter Header

By Derek Robertson

Presented by 

Instagram

Elon Musk is followed by journalists as he walks to a meeting at the U.S. Capitol.

Elon Musk, one of the co-leaders of President-elect Donald Trump's Department of Government Efficiency, is pursued by journalists as he walks to a meeting at the U.S. Capitol on Dec. 5, 2024. | Francis Chung/POLITICO

Washington is about to get invaded by a cabal of outsiders, the tech billionaires, investors and Silicon Valley celebrities like Elon Musk and Marc Andreessen, whose ideas are suddenly central to the Trump transition.

Sometimes, outsiders are a true unknown — what they want out of politics, how they’re planning to approach it and what even inspired them to get involved in the first place.

Not this time.

Unlike wealthy power players of another generation, whose ideas and influence were often cloaked and exercised through backroom deals, these tech moguls tend to talk about their policy preferences in public … a lot.

Whether on podcasts, lengthy posts on X and Substack, or through influential self-published manifestos, the tech characters now heavily involved in President-elect Donald Trump’s transition have a clear track record of demands, expectations and ideas, all delivered with the classic Silicon Valley confidence that they can run the government better than the government itself.

The picture that emerges is one of a sweeping deregulatory agenda touching everything from crypto to artificial intelligence to fields like the defense industry and health technology.

Their goals might not be uniform, but on the whole they see their innovations as dragging a moribund America into the future, with the government’s role either to help them do it or get out of the way entirely.

Andreessen — founder of venture capital firm Andreesen Horowitz, or a16z for short — is best known in tech-policy circles for his 5,000-plus-word “techno-optimist manifesto,” which made a searing case that regulators bent on stifling industry are killing America’s entrepreneurial spirit. In it, he nodded to an eclectic pantheon of heroes including free market economist Frederich Hayek, transhumanist theorist Ray Kurzweil and Italian futurist Filippo Tommaso Marinetti. Now he’s started to lay out even more specific policy thoughts: Today Andreessen appeared on the podcast of Free Press founder Bari Weiss, envisioning Trump’s second term as a direct rebuke to what he views as a hostile, anti-tech Biden administration.

“When we endorsed Trump, we only did so on the basis of tech policy,” Andreessen said. “The crypto war, we were on the receiving end for four years and it was incredibly brutal, incredibly destructive; AI, we had meetings in D.C. in May where we talked to them about this and the meetings were absolutely horrifying and we came out basically deciding that we had to endorse Trump.”

Andreessen claimed that representatives of the Biden administration said that they would work to close off AI development and research to smaller actors, citing safety concerns — a life-or-death scenario for Andreessen, whose entire career and fortune are built on investing in startups. (The Biden administration did not respond immediately to a request for comment.)

That focus on opening up the economic playing field to all comers is what unites Andreessen and the more politically outspoken startup ecosystem with “Big Tech,” the established giants like Google and Microsoft, which have traditionally sought to stay politically neutral but have plenty to gain from a GOP-led deregulatory agenda.

Both sides said as much in a pre-election blog post jointly written by Andreessen, his founding partner Ben Horowitz and Microsoft chairman Satya Nadella, who wrote of a “policy opportunity for AI startups” that includes investment in AI resources, support for open-source development and a skeptical eye toward new regulation of the technology.

The trio said new tech regulations should be evaluated by how much they would benefit start-ups.  “Regulation should be implemented only if its benefits outweigh its costs,” the trio wrote, elaborating that “In accounting for costs, policymakers should include an assessment of possible costs associated with unnecessary bureaucratic burdens to startups.”

That skeptical, pro-growth approach to government action dovetails nicely with the mission of Musk and entrepreneur (and former GOP presidential primary candidate) Vivek Ramaswamy’s DOGE, a committee outside government that will identify and recommend opportunities for Trump and Congress to downsize the federal government.

Its goal, they say, is to aggressively “liberate individuals and businesses from illicit regulations never passed by Congress and stimulate the U.S. economy.”

With Musk allies interviewing candidates for positions at departments as disparate as State and Defense, as The New York Times reported on Friday, tech moguls could have allies in place no matter where their increasingly powerful tools overlap with policy.

One example of how the tech right’s sweeping deregulatory agenda tends to encompass, well, everything, is energy. Many right-leaning tech thinkers see boosting America’s energy output as an imperative for reducing the cost of living, powering AI development and competing with China — and they’ve made common cause with mainstream Republicans to pump up growth by maxing out energy production.

David Friedberg, a venture capitalist and co-host of the “All In” podcast, said on an episode Friday that “More electricity means more automation means more AI means more things are being done … in factories, are being done by machines … the regulatory structure prohibits our ability to actually expand electricity production capacity.”

So, to review: Crypto foes like Securities and Exchange Commission Chair Gary Gensler are out. Podcasters/VCs/Trump allies like venture capitalist and Musk pal David Sacks are in. Biden environmental regulations perceived as blocking America’s energy production are out; more fossil fuel production as well as new energy sources like nuclear and geothermal are in. Safety-first AI regulations are out, competition among AI startups is in.

As ambitious as the tech right’s goals are, they might meet resistance to some extent even from … within the tech right.

One of the big arguments is emerging around antitrust: Vice President-elect JD Vance, a Peter Thiel protege, has supported the antitrust crusade waged against Big Tech by Joe Biden’s Federal Trade Commission Chair Lina Khan. Some in the tech world have also cheered these developments, viewing the tech giants as complacent, excessively social justice-oriented dinosaurs that need to be brought to heel.

Trump has already tapped Vance ally and Big Tech foe Gail Slater to oversee the Department of Justice’s antitrust efforts, seen as a nod in favor of antitrust enforcement and setting up potential conflict within the administration.

But Khan and her view of how government should relate to industry are extremely unpopular with other large parts of the tech world, including venture capitalists who have widely derided her and the Biden administration for policies they say make the economy less dynamic by freezing mergers and acquisitions. At a San Francisco conference of the tech right DFD covered earlier this year, the atmosphere palpably chilled when her name was invoked.

There’s also immigration, which could be a point of tension between the tech right and the MAGA right, with the tech world largely supporting increased immigration for high-skilled workers. But as POLITICO’s Brendan Bordelon reported earlier this month, that view clashes with the MAGA call for a widespread crackdown on all immigration. Will Musk prevail, or Trump adviser Stephen Miller? When it comes to achieving their priorities in Washington, Silicon Valley mavens could find themselves face-to-face with a very familiar dynamic from the private sector: What the boss says, goes.

On one hand, “if [Trump is] surrounded by deregulatory tech types, then his administration will probably favor a deregulatory agenda, simply by osmosis,” Jeremiah Johnson, co-founder of the center-left think tank the Center For New Liberalism and author of the Infinite Scroll Substack, told DFD.

“But his one consistent point is that he really, really hates immigration and trade … that's the obvious point of tension,” he noted, warning that the Silicon Valley right is placing a major bet on its ability to guide the president-elect in their preferred direction, and that “a trade war is bad for tech, as is a broad crackdown on legal immigration.”

 

A message from Instagram:

Instagram Teen Accounts: a protected experience for teens, guided by parents

Instagram Teen Accounts are designed to address parents’ biggest concerns, providing automatic protections for who can contact their teens and the content they can see.

The impact: Built-in limits give parents more peace of mind when it comes to protecting their teens.

Learn more.

 
the ai act, one year later

One year after the deal was struck for the European Union’s AI Act, what’s going on with it?

Our colleagues in Europe Pieter Haeck and Mathieu Pollet report that the debate has shifted from reining in AI to making Europe a contender in the global race to build the technology.

The European Commission’s guidelines on AI will go into effect in February, and it will finish collecting feedback on them tomorrow.

Commission Executive Vice President Henna Virkkunen promised during a recent Parliament hearing that Europe will become an “AI Continent,” the success of which MT Europe reports could be largely in the hands of French AI contender Mistral, which inked a massive deal with Microsoft in February.

Meanwhile, the European Commission announced Tuesday it would build supercomputers it called “AI Factories” at seven sites to boost AI development across the continent.

 

A message from Instagram:

Advertisement Image

 
a new tech gavel

The incoming chair of the House Energy and Commerce Committee will bring a bevy of tech experience with his gavel.

POLITICO’s John Hendel reported for Pro subscribers Monday evening that Rep. Brett Guthrie (R-Ky.) will chair the committee, which wields considerable influence over tech and telecom policy. Guthrie partnered with Rep. Doris Matsui (D-Calif.) to form the Congressional Spectrum Caucus in 2014, giving him insight into the workings of the Federal Communications Commission and Commerce Department.

Guthrie has introduced legislation to protect rural broadband networks and healthcare providers from cyberattacks, as well as to study blockchain technology. He’s also urged the Energy Department to strengthen the U.S. power grid in order to bolster AI.

 

Billions in spending. Critical foreign aid. Immigration reform. The final weeks of 2024 could bring major policy changes. Inside Congress provides daily insights into how Congressional leaders are navigating these high-stakes issues. Subscribe today.

 
 
post OF THE DAY

tepid bath of managed decline = the period between Christmas and new year

The Future in 5 links

Stay in touch with the whole team: Derek Robertson (drobertson@politico.com); Mohar Chatterjee (mchatterjee@politico.com); Steve Heuser (sheuser@politico.com); Nate Robson (nrobson@politico.com); Daniella Cheslow (dcheslow@politico.com); and Christine Mui (cmui@politico.com).

If you’ve had this newsletter forwarded to you, you can sign up and read our mission statement at the links provided.

 

A message from Instagram:

Instagram Teen Accounts: automatic protections for teens

Parents want safer online experiences for their teens. That's why Instagram is introducing Teen Accounts, with automatic protections for who can contact teens and the content they can see.

A key factor: Only parents can approve safety setting changes for teens under 16.

Learn more.

 
 

Write your own chapter in the new Washington. From the Lame Duck Congress Series to New Administration insights, POLITICO Pro delivers intelligence across 22+ policy areas to help you anticipate and navigate change. Discover how a Pro subscription empowers you. Learn more today.

 
 
 

Follow us on Twitter

Daniella Cheslow @DaniellaCheslow

Steve Heuser @sfheuser

Christine Mui @MuiChristine

Derek Robertson @afternoondelete

 

Follow us

Follow us on Facebook Follow us on Twitter Follow us on Instagram Listen on Apple Podcast
 

To change your alert settings, please log in at https://login.politico.com/?redirect=https%3A%2F%2Fwww.politico.com/settings

This email was sent to salenamartine360.news1@blogger.com by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA

Unsubscribe | Privacy Policy | Terms of Service

Post a Comment

Previous Post Next Post