The Changing Politics of Silicon Valley (REISSUE)
Will Silicon Valley Vote Red?
This Report is a reissue of our July feature. When we first published this Report, Silicon Valley appeared, at least to outside observers, as a steadfast Democratic bastion, reliably blue in a sea of shifting political currents. Yet, in just a few weeks, that perception began to unravel. With Donald Trump now emerging as the victor, it’s evident that Silicon Valley didn’t merely watch from the sidelines. In a striking shift, the Valley’s financial support leaned decisively toward Trump, signaling a recalibration in the political loyalties of one of America’s most influential hubs.
Original Report Follows.
Covering politics today often feels like covering football - sometimes the team you have rooted for all your life decides to move out of town. This is what happened as we talked to several of our friends, sources, and colleagues to build a picture that should be troubling if you are a democrat. Long perceived as a liberal bastion, this hub of innovation and wealth is witnessing a notable contingent expressing an affinity for Republican economic policies, potentially signaling a shift in allegiances that could reverberate through national politics. If you are a Democrat, you need to take notice.
The classic "How to Hack a Party Line: The Democrats and Silicon Valley" opens with a striking statement: "For most of the 1990s, even the nerds in Silicon Valley had sex appeal." These once-young innovators have matured, and their allure has returned. On top of this mountain sits a 60-year-old Taiwanese immigrant, his leather jackets selected by his wife. We interviewed numerous such nerds—rather, masters of the universe—to gain insights into how they will vote - with their wallets. Additionally, we spoke various lobbyists, activists, and political fundraisers across the political spectrum to depict a Silicon Valley that is not only aging but also shifting politically towards the right.
Silicon Valley has become a significant political player in the presidential race, with both candidates dedicating time and energy not just to secure votes and funding, but also to capture something less tangible yet equally precious: the image of a candidate of the future, associated with the progressive mindset of the high-tech industry. Silicon Valley embodies the intersection of affluence and innovation, a nexus where all politicians aspire to be. "High-tech leaders have the stature of celebrities; they serve as endorsers, and such endorsement is crucial." Money is important, too, with Silicon Valley estimated to contribute up to 30% of total spend this election season.
"Many perceive Silicon Valley as staunchly Democratic, yet we've managed to raise significantly more than the 'blue machine,'" remarked a Republican lobbyist affiliated with TechNet. A prominent Republican party fundraiser commented on Trump, "He has a broad understanding of the Valley... He's pragmatic." These remarks encapsulate our month-long discussions, during which the traditionally Democratic Silicon Valley appeared increasingly Republican. The question arises: Is Silicon Valley shifting towards Republican hues? This was the recurring inquiry as we engaged with contacts who were not as Democratic-leaning as anticipated. It's not that we didn't encounter the usual "I can ask Mark for $500,000 if a congressman is struggling with TV deals," but it was evident that there were just as many Republicans, even among those donning hoodies and leather jackets. We refrained from asking "Mark who," as that would have been imprudent. This contrasts sharply with the Silicon Valley of 2015, when Peter Thiel was ostensibly "driven out, partly due to the cultural homogeneity and liberal 'echo chamber' he perceived in Silicon Valley." For every $500,000 check for the Democrats, we observed a million-dollar check for the Republicans.
"The TikTok ban, blocking every major deal, flip-flops on energy," stated a tech executive from a major social media firm, "these were unexpected moves from the Democrats. These are the issues Trump understands." This recognition of Republican leader’s understanding tech companies' interests was a consistent theme in our conversations with executives from various sectors, from semiconductors to social media. "We operate in a highly networked, global economy where public policy is crucial. Donald Trump truly understands how the government should interact with technology." "Financial commitments are two-to-one in Trump's favor, with expectations of more funds directed to Trump as the election nears," disclosed an executive who has pledged an eight-figure sum to a Trump reelection super PAC.
Supporters on the Blue side are not taking it sitting down, either. "If you're not fucking pissed right now, then what's wrong with you? We've lost our edge to these newcomers who prioritize wealth over integrity," exclaimed one of the sources, who was a major donor to Biden's 2020 campaign. "Some Republicans act as if they're competing against Elizabeth Warren instead of Joe Biden. Consider his achievements - reduced unemployment, unprecedented economic growth, the surge in AI technology - would this have happened under Trump?" However, when questioned further, they admitted to reducing their financial support for the Biden campaign by 20% compared to 2020. Nevertheless, many are rallying in significant numbers, and it's clear that as the incumbent President, Biden is far from being an underdog.
Some executives fall into a distinct third category. "Politics is highly destructive," stated a CEO of one of the US's most successful startups. "With the significant wealth and value generated in Silicon Valley, we need to remain focused—we are succeeding despite politics, not because of it. Now, there's an opportunity, and many would argue, a duty, for Silicon Valley to pivot towards addressing more significant issues." This sentiment has become less prevalent than a few years ago when tech giants began trading their hoodies for tailored suits. Others have outright rejected this apparent indifference. "Those who claim the Valley is apolitical are referring to 'political' in a very traditional sense," observed a political commentator, referencing John Markoff's seminal book on Silicon Valley's politics. Echoing Steve Jobs, the new guardians of the third pillar believe that technology can—and should—positively impact people's lives. Currently, they are remaining silent while contributing to a Trump campaign.
Silicon Valley has not always been overtly political. However, in the 1990s, companies and executives from the region raised $40 million to oppose Proposition 211 and later established TechNet in 1997, a bipartisan political action committee comprising over 190 executives. As technology's role in the economy expanded, so did its political engagement. "It's not a numbers game, but an image game," stated a lobbyist who has represented Alphabet and Meta, previously known as Google and Facebook, respectively.
The years 2016 and 2020 now appear distant and distinct through this lens. In 2015, GrubHub CEO Matt Maloney, based in Chicago, urged employees who supported Trump's ideology to resign. SpaceX executive Dex Torricke-Barton, a Burmese refugee's son, left his job to engage in grassroots efforts against the Trump 'nightmare.' Venture capitalist Shervin Pischvar passionately advocated for California's secession as a nation. These voices have become rare and much quieter now.
After a Trump presidency that largely benefited them, many executives have changed their stances. It remains to be seen if Silicon Valley's shift in financial support will lead to a change in the presidency come November. Remember to vote kids – not only with your wallets but also at the polls.
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