[Reading Science] PayPal Mafia's 'Ten-Year Plan'... All In on Trump

Major Silicon Valley Forces Shift Landscape by Supporting Trump
Vice Presidential Candidate Vance Raised by 'PayPal Mafia'
AI and Cryptocurrency Policies in US Science and Technology Expected to Change if Trump Wins

Former U.S. President Donald Trump appeared on the podcast "All In," hosted by David Sacks, one of the 'PayPal Mafia,' on June 21, where he shared his views on future policy directions and the technology sector. Photo by All In Podcast Capture

#1. On June 21st, former President Donald Trump appeared on the podcast ALL IN, hosted by David Sacks. Sacks is a prominent figure in Silicon Valley, well known as part of the 'PayPal Mafia.' Although a meeting between Trump and Silicon Valley might seem awkward, their interaction was quite the opposite. They appeared very familiar with each other, and a series of criticisms against President Joe Biden followed.

#2. Before the podcast recording, a fundraising party for Trump’s campaign was held at a luxury home in San Francisco. The event was led by Republican Senator J.D. Vance, and the house owner was David Sacks. Trump was very pleased with the event, where all tickets, priced up to $300,000, were sold out. Why would a senator from Ohio, a Democratic stronghold, invite Trump to raise funds in San Francisco? It was thanks to Vance’s network, built through his venture capitalist activities in Silicon Valley, stemming from a school friendship. Those connections recommended Vance as a vice-presidential candidate to Trump, and believing it would help win the election, Trump readily agreed.

Elon Musk, Tesla CEO, known as the 'PayPal Mafia,' David Sacks, host of the All-In podcast, Peter Thiel, founder and chairman of Palantir Technologies, and Marc Andreessen, director of Coinbase (from left).

With less than four months remaining until the 2024 presidential election, former President Donald Trump’s chances of winning are becoming increasingly likely. The failed assassination attempt on Trump has ironically boosted his election prospects, and the emergence of J.D. Vance, a vice-presidential candidate from a humble background, seems to be adding momentum to his campaign.

One surprising aspect of this election is the shift in Silicon Valley’s voting tendencies. Silicon Valley companies, which have led global innovation and revived the U.S. economy from the decline of manufacturing, have traditionally leaned progressive. However, this year’s election marks a change. Now, a figure nurtured by Silicon Valley is becoming the vice president, and there is speculation that this person could become president in four years. This shift could bring significant changes to U.S. policies in Silicon Valley, as well as in science, technology, and the economy. Understanding the Silicon Valley figures behind Trump can also help predict future U.S. technology development policies.

◇ From one supporter eight years ago to a solid trend: Silicon Valley backs Trump = The 2016 Republican National Convention was criticized as a Trump family affair. While key Republican figures avoided attending or giving supportive speeches, one Silicon Valley figure took the stage: Peter Thiel. Thiel, who co-founded the financial payment company PayPal with Tesla CEO Elon Musk and later sold it to eBay, became a venture capitalist and gained fame as Facebook’s first investor. After Trump’s victory, Thiel led Silicon Valley figures to visit Trump Tower in New York.

While Thiel was essentially the sole Silicon Valley leader of Trump’s 2016 campaign, the 2024 election landscape is vastly different. Musk has emerged as a staunch Trump ally, donating large sums to the campaign. David Sacks, another member of the PayPal Mafia, has also joined in support. This is not just a PayPal Mafia phenomenon; Mark Andreessen and Ben Horowitz, owners of the leading Silicon Valley venture capital firm Andreessen Horowitz, have also endorsed Trump.

Their influence goes beyond mere support. They have helped create a vice-presidential candidate aiming for the presidency after Trump. Senator Vance’s nomination as vice president would have been impossible without the active backing of the PayPal Mafia. Vance being Trump’s ‘avatar’ or a white, humble-background politician is considered a secondary factor.

Former President Donald Trump, the Republican presidential candidate, and Senator JD Vance, the vice-presidential candidate, held their first joint campaign rally on the 20th. The two are receiving support from Silicon Valley figures in this presidential election.
[Image source=Reuters Yonhap News]

◇ The vice-presidential candidate created by the PayPal Mafia: Will a Silicon Valley native become White House owner? = It is widely accepted that 90% of the credit for bringing Vance to his current position goes to Thiel. Vance met Thiel by fate during a special lecture at Yale University. After graduation, Vance moved to San Francisco, on the opposite coast, where he joined Thiel’s venture capital firm Mithril Capital and began networking with tech figures. Thiel also wrote the recommendation for Vance’s autobiographical novel, "Hillbilly Elegy." Rumors circulated in Silicon Valley that Vance was Thiel’s prot?g?. After gaining some experience, Vance founded his own VC but eventually began dreaming of entering politics.

At this point, Thiel provided crucial support. He donated large sums to Vance’s election-supporting super PAC, persuaded Vance?who had been in the anti-Trump camp?to meet Trump, and helped secure Trump’s endorsement. Trump’s endorsement guaranteed Vance’s victory in the 2022 midterm election for Ohio senator.

The PayPal Mafia’s support was also decisive in Vance becoming the vice-presidential candidate in this election. U.S. media reported that Musk even spoke with Trump to help make Vance the VP candidate.

◇ Silicon Valley, tired of regulation, aligns with Trump = Analysts suggest Silicon Valley’s support for Trump stems from backlash against the Biden administration’s regulations. A prime example is the conflict between Musk and Biden. Biden, a pro-union president, has largely ignored Tesla, which lacks a union, throughout his term. Favoring established automakers with unions over the leading U.S. electric vehicle company has fueled Musk’s dissatisfaction. Disputes over factory operations during the COVID-19 pandemic and California’s liberal policies have also contributed to Musk’s shift toward the Republican side.

Biden’s moves to regulate cryptocurrencies have also had a significant impact. Silicon Valley, which has increased investments in cryptocurrency and blockchain, naturally opposes government crypto regulations. This aligns with Trump’s recent pro-cryptocurrency statements. The Winklevoss twins, prominent crypto investors, donated Bitcoin to Trump’s campaign, seen as a move to seek regulatory relief.

Interpretations also suggest that the Biden administration’s focus on regulating rather than fostering artificial intelligence (AI) has provoked Silicon Valley. A notable example is the antitrust regulatory controversy involving Nvidia and OpenAI. The U.S. Federal Trade Commission (FTC) recently announced plans to investigate Microsoft, Nvidia, and OpenAI for market monopolization. Silicon Valley’s Trump supporters have openly expressed dissatisfaction with pushing companies amid monopoly concerns while AI is still in its early stages.

On Sacks’ podcast ALL IN, Trump emphasized the importance of power supply and nuclear energy, including small modular reactors (SMRs) and nuclear fusion, for supporting AI rather than regulating it. These fields are also major investment areas for Silicon Valley. This shows that Trump has accumulated considerable knowledge through interactions with Silicon Valley supporters.

Even if a new White House leader emerges with Silicon Valley’s backing, there is no guarantee policies will follow their wishes. Vance has previously voiced concerns about big tech companies like Google. Nonetheless, Vance becoming vice president means a fast lane for communication with Silicon Valley is opening. Donald Trump Jr., Trump’s eldest son and known to be close to Vance, has praised Vance’s knowledge of the tech sector.

◆ Asia Economy YouTube Channel offers more detailed coverage in the '[AKRadio] Baek Jong-min & Kang Hee-jong’s Tech Talk: Why Did Silicon Valley Stand Behind Trump?' episode.

This content was produced with the assistance of AI translation services.