Elon Musk is not the only billionaire technology with power over federal services that regulate his businesses. Ever since Donald Trump has taken on duties, more than three dozen employees, allies and investors of Musk, Peter Thiel, Marc Andreessen and Palmer Luckey have assumed roles in federal services, helping to direct billions of contracts to their companies.
The companies that belong, founded or investing by Musk, Thiel, Andreessen and Luckey have gathered more than twelve federal contracts totaling about $ 6 billion in January, according to A, according to A, Analysis of Wall Street Journal. And they are actively following billions more.
These appointments, which are located in supervisor, regulate and award businesses to the four men’s companies, create a series of red flags. They could violate the laws of conflict of interests or the government’s ethics regulations, which prohibit federal employees from using a public office for private profit.
And while it is not uncommon to install reliable allies in government roles, the Musk network has moved at an unprecedented pace and scale. TechCrunch has previously been mentioned to all people in the Musk universe who joined Doge, where he has closed federal services and reduced labor dynamics to departments that regulate his businesses. At least 19 others with Silicon Valley connections, whether they are founders or investors, have also joined Doge.
“Trump’s second administration is actually the first in recent years to impose any additional ethical safeguards on high level appointed,” Daniel Weiner, director of the Brennan election and government program program, told TechCrunch. Noted that Trump shot at least 17 people At the Government Ethics Office, including the Director, immediately after taking up the duties.
“It certainly may increase the risk of having people working on issues that affect, at least indirectly, their minimum lines,” Weiner said. “But this is a long -term issue in our government that is not unique to this administration.”
Innovation over accountability
Some may argue that it makes sense for employees and associates of Musk, Thiel, Andreessen and Luckey to participate in government services. Their trusts are talented people behind the cutting -edge technology that the government really needs and understand how to innovate quickly and compete worldwide.
The most serious questions arise when favoritism threatens to undermine competition, when politics is created or destroyed to protect market sovereignty or when the regulations that served the public good are delayed to promote business interests.
For example, the Financial Consumer Protection Office recently fell from the exercise of rules that would restrict data brokers, despite increasing concerns about privacy – a shift that benefits the companies involved in AI, data surveillance and analysis. Another example is the firing of Doge executives in the National Road Traffic Safety Service, which are investigating the autonomous safety of vehicles, including several Tesla detectors.
“One of the decisive structural challenges that the United States government now has is that we have a system in which the much richest interests have so much power to form our elections and then turn around and shape government policy,” Weiner said.
Another appointed by Silicon Valley, Mike Kratsios – formerly Thiel – is now a leading technological policy for the US government. In a April speech, he talked to throw away the bad regulations that “weigh our innovative”, especially those who innovate in AI.
“Many people in Silicon Valley tend to believe that what has worked at Silicon Valley is also going to work to manage the United States government,” Weiner said. “And as we see now, the danger is many people will be injured because of the cases they make.”
“The fact that you had a successful start after five others failed does not necessarily mean that you know how to run social security administration,” he continued.
A network in and a repayment out
All businesses between Musk, Thiel, Andreessen and Luckey are related. Musk’s SpaceX was supported by Thiel’s funders fund and Andreessen’s A16Z (which was also invested in X and XAI). Both VCs also supported Anduril, the start of Luckey’s defense.
The overlapping network of founders, funders and involved extends to several federal organizations. And in many cases, these organizations direct billions to federal contracts back to these companies.
The magazine found that throughout Washington, people from the Musk network, including Tesla, X and SpaceX, are located in more than twelve organizations, from the executive agency of the President and the Personnel Administration Office to the Transport Department and the Ministry of Energy.
SPACEX employees are also in agencies that could offer the new business company. For example, the magazine reports that SpaceX Theodore Malaska’s senior engineer was exempted in February, allowing him to do temporary work in the federal aviation administration while still working at the rocket company. FAA has not yet given contracts to Spacex, but MALAKKA said to x The organization used Starlink to upgrade a weather observation system in Alaska.
SpaceX is also the main trading provider that carries the crew and load for NASA. Despite national security concerns – such as the company’s secret backdoor for Chinese investment and Musk’s habit for taking drugs – SpaceX in April won 5.9 billion $ From a multi -year contract of $ 13.7 billion from the US space power in April to launch Pentagon missions. DOD, which is currently a Starlink customer, also plans to buy SPACEX Satellites StarshieldA military version of the internet satellites.
Thiel -backed workers have been in roles in the Ministry of Foreign Affairs, the Office of Management and Budget, Health and Human Services and Social Security, according to the Wall Street Journal. Thiel’s Palantir has already been awarded almost $ 376 million by 2020 by health and human services. In 2024, the company was also awarded at least $ 1.2 billion in Defense ministry contracts in 2024, and is in operation Another $ 100 million deal.
Anduril, Palantir and SpaceX recently submitted a proposal of many billions of dollars for Trump’s Golden Dome program, which will also add to the existing Anduril contracts with the US Army. Recently, Anduril and Microsoft have undertaken a 2021 contract worth up to $ 22 billion for the development of AR headphones, according to the magazine.
A manager of Anduril, Michael Obadal, has been set to a top role in the Ministry of Defense. In his ethical revelation, he said he would do Keep Anduril’s stock If appointed.
TechCrunch arrived in Anduril, Andreessen Horowitz (A16Z), Palantir and SpaceX for comments.
“This kind of concentration of private wealth and political power is ultimately very dangerous to our economy,” Weiner said. “Because instead of the government they make decisions intended to promote competition, to boost economic growth, you are running the actual risk that government decisions are going to be structured around the protection of specific companies and specific industries from full economic competition.”
