Amid a recent public clash between U.S. President Donald Trump and Tesla Chief Executive Officer Elon Musk, major corporations in Silicon Valley are choosing a different path. They are quietly expanding their strategic partnership with the Trump administration and working to strengthen ties with Washington.
On the 7th (local time), The Washington Post reported that many leaders of tech corporations are focusing on pragmatic goals such as deregulation rather than comprehensive system reforms across the government. They are establishing direct communication channels with the White House and federal agencies to assert their positions in key areas like cryptocurrency and artificial intelligence (AI).
While Musk lost political ground by advocating for expenditure cuts at the Department of Government Efficiency (DOGE), many Silicon Valley corporations are expanding their foundations with a more pragmatic approach. The AI data analytics firm Palantir has secured large contracts with the Department of Defense through close communication, and the defense startup Anduril raised $2.5 billion (approximately 3.386 trillion won) to expand its contracts with the Department of Defense.
Emil Michael, formerly of Uber, and venture investor David Sacks have been appointed to key positions at the Department of Defense and the White House, respectively, increasing their influence on policy behind the scenes.
Trump is also boosting his support within the IT industry by repealing a significant number of AI regulations implemented during former President Biden's term. The cryptocurrency industry has strengthened ties with the Trump administration and the Republican Party by making large political donations, and the Trump family has directly become involved in related businesses, solidifying their interests. Recently, the Trump administration mediated transactions worth billions of dollars for U.S. AI companies in the Middle East.
The split between Musk and Trump is being perceived sensitively within the industry. The popular U.S. tech podcast "All In" announced an emergency broadcast related to this, but it was quickly canceled, and the host noted that he would "not say anything for the time being." However, many industry insiders, speaking on condition of anonymity, indicated that "the clash between the two was foreseeable and its actual impact will not be significant."
The alliance between the IT industry, centered in Silicon Valley, and Trump's traditional support base, Make America Great Again (MAGA), has maintained an unstable state. The two sides have had conflicts over issues such as short-term employment H-1B and student visas, cuts to science and technology budgets, and high tariff policies even before Trump took office. Recently, after Trump announced large tariff increases, there has been public criticism within the IT industry.
However, as Musk openly criticized this and took up a counter-position, there is a growing sentiment within Silicon Valley to distance themselves and follow an independent course.
The IT industry perceives a friendly relationship with MAGA as beneficial. A Silicon Valley insider explained during an interview with The Washington Post that "the willingness to endure all of MAGA's unreasonable demands was justified by the rewards received." An executive from a corporation stated that "Musk focused solely on identifying fraud and waste within the government" and noted that "his indifference to substantive policy-related discussions was a problem."
As a result, the majority of tech corporation leaders are currently not publicly disclosing their political stances and are adopting a pragmatic approach. John Coogan, the host of the podcast "Technology Business Programming Network (TBPN)," stated that "this is not the time for us to be asked, 'Who will you vote for?' (the election season)" and emphasized that "there is no need to strongly support anyone."