Tech won the market. Now it wants the state?

Elon Musk is widely hailed as a technological and entrepreneurial genius, with global success in founding SpaceX and Tesla. However, his ventures into politics have sparked considerable controversy. Is he merely a “political nerd” or a reformist poised to disrupt the political landscape?

Musk reportedly invested US$290 million and leveraged his influence to support Donald Trump’s re-election campaign last year. Subsequently, he was appointed as the head of the Department of Government Efficiency (DOGE). However, his tenure was challenging, as his ambitious proposal to cut US government spending by US$2 trillion resulted in a reduction of only US$175 billion.

Shortly after Musk left the department, the One Big Beautiful Bill Act (OBBBA) introduced by the Trump administration led to a fallout between Musk and Trump. Musk not only failed to realise his political ambitions, but his enterprises also suffered significant losses. Tesla’s market value plummeted by over US$120 billion following the split with Trump, with talks of government subsidies being slashed and a crackdown on its carbon credit revenues. Musk’s political endeavour appeared to have failed.

Despite his limited success at DOGE, Musk has not withdrawn from his involvement in US politics. On the day the OBBBA passed, he announced the formation of the America Party, aiming to establish it as the third major party in the US. However, many believe that Musk’s plan is unlikely to succeed as he faces considerable resistance. So, is Musk merely a “political nerd”?

In truth, Musk’s involvement in US politics is not an isolated move, but a reflection of the strong dissatisfaction among American tech elites with the current political reality. They want to move away from the traditional mold of influencing politics behind the scenes through donations and Washington lobbyists, and have a more direct hand in changing US politics.

The dissatisfaction with American politics among Musk and other Silicon Valley elites is seen in several areas:

Government inefficiency

Silicon Valley elites believe that there is an urgent need to improve the US government’s efficiency. Using technology to enhance government efficiency was one of the reasons Musk proposed establishing DOGE. He recruited young internet technology elites, hoping to leverage their expertise to drive the government’s digital transformation. However, this endeavour fell short of expectations.

Losing power and control under democracy

Silicon Valley elites’ disillusionment with American democratic politics also became an impetus to seek change. In 2009, entrepreneur Peter Thiel wrote an essay titled “The Education of a Libertarian” and declared, “I no longer believe that freedom and democracy are compatible.”

He controversially argued that democracy has become a “contradiction” to capitalism due to welfare beneficiaries and women’s suffrage, i.e. when more people get to vote, they tend to support bigger government, making it hard to maintain a pure capitalist system in a democracy. Thiel advocated for a CEO-like or monarch-style president in the US, so the government and president have greater power to implement policies as they see fit. This view is starkly different from orthodox Western democratic politics, reflecting a deep re-evaluation of US politics by some Silicon Valley tech elites.

Enhancing the role of technology in politics

Silicon Valley elites feel that technology and tech elites themselves should play a greater role in American democratic politics. Musk’s push for the establishment of DOGE was an attempt to enhance government efficiency with technology. At the same time, software platform company Palantir’s collaboration with the US government also demonstrated the importance of technology in politics.

Palantir is a powerful platform that can integrate diverse data sources and extract critical intelligence, and it has become a key partner for US military and intelligence agencies such as the CIA and the FBI. By the end of 2024, Palantir’s market value reached US$172.2 billion, showcasing the vast potential of technology in politics.

Building a grand vision

Silicon Valley elites focus on more than just American politics, often envisioning ideas that reach beyond humanity and Earth. Musk has consistently emphasised the need to save humanity by establishing a colony on Mars, making humans an interplanetary civilisation. Thiel, a Christian futurist, is fixated on issues of human mortality and immortality, and his thoughts on “transhumanism” carries strong Christian undertones. 

The thoughts of these Silicon Valley tech elites are rife with themes of revelation. They believe that humanity is at a significant revolutionary point, where technology could bring about great destruction alongside its salvific potential.

From a political standpoint, individuals like Thiel are more inclined towards radical systemic change rather than a gradual reform of existing structures. They felt that the ultimate destructive power of technology would cause the collapse of the old world, providing a possibility for new power and order.

Therefore, as opposed to merely contemplating American politics on a material level, it is more accurate to say that these Silicon Valley tech elites have a deeper consideration of the impact of technology on the American — or even the global — civilisation and politics. This is especially so in the context of new technologies like artificial intelligence posing grave and even existential challenges to politics and civilisation; how should humanity respond at the political level? This is an extremely important and profound challenge.

Despite their interest in American politics, can Silicon Valley elites truly impact the political landscape? We need to acknowledge that tech elites are using both traditional capitalist methods and new technologies to engage in political practices and experiments with growing influence.

In terms of capital utilisation, JD Vance, supported by Peter Thiel, has successfully ascended to the position of US vice-president. Thiel and Musk used capital to influence the US election, facilitating Trump’s re-election. This demonstrates that Silicon Valley elites have already gained substantial political influence through capital.

More importantly, in contrast with traditional capital, the Silicon Valley elites now have the power to reshape politics. For example, Musk’s acquisition of Twitter is not merely a business operation, but an intention to influence politics through the reformed X platform. They not only own new social media platforms, but they also control advanced algorithms and data, enabling precise promotion of their political agenda. This influence far surpasses that of traditional newspapers and television networks, and its impact is greater than traditional political advertising.

While many believe that the America Party is unlikely to succeed, it is worth remembering that when Musk launched the first Tesla car in 2008, it was likewise met with scepticism. He experienced numerous failures with the SpaceX project, which was initially deemed unlikely to succeed. Today, Silicon Valley elites hold data, algorithms, social media platforms and vast capital power. Would they replicate the miracles seen in the technology and business sectors in the political domain? What may seem improbable to conventional thinkers could, in fact, be more plausible than it appears.

This marks only the beginning of Silicon Valley elites’ efforts to reshape Western political systems through technology — and, by extension, to influence the course of political civilisation. Their ambitions in the political realm may unleash disruptions on a far greater scale than those seen in tech or business, with consequences that directly affect democratic institutions and the everyday lives of citizens.

This article was first published in Lianhe Zaobao as “马斯克是书呆子还是破局者？”.

Related: Elon Musk’s political misadventure ends in public ruin | Elon Musk: The American boss with a ‘Chinese heart’ | Musk’s America Party: Personal grievance or political movement?