Why are Mark Zuckerberg and other Silicon Valley CEOs supporting the GOP ticket?

One advantage Donald Trump has this election cycle as he makes his second attempt for another term in the White House is the support of some of Silicon Valley’s biggest players.

Elon Musk has provided what Donald Trump characterized as a “full-throated endorsement” of his candidacy and will speak with the billionaire on Musk’s platform X on Monday, August 12.

Though Meta owner Mark Zuckerberg has not formally endorsed Donald Trump’s bid for the White House, he has made public statements supporting the former president. Just days before President Joe Biden dropped out of the race, Zuckerberg said that he would not be formally endorsing either ticket but described Donald Trump’s response to being shot as “badass.”

After explaining that he would not be directly involved in the political process by throwing his full support behind one of the candidates, he described “seeing Donald Trump get up after getting shot in the face and pump his fist in the air with the American flag” as “one of the most badass things [he had] ever seen in my life.”

Donald Trump and the Republicans have never been friendly with social media giants like Zuckerberg and other members of the Silicon Valley elite, so what’s changed?

Republicans cozy up with leaders in AI and digital currencies

In addition to Elon Musk and billionaire tech investor Peter Thiel, many involved in the trading of cryptocurrency have also begun aligning themselves with the Republican party.

Ryan Selkis, the former CEO of Messari, a data-focused crypto company, was forced to step down from his position after posting a series of pro-Trump tweets. “Anyone that votes against Trump at this point can die in a f-----g fire,” read the since-deleted post.

This shift has a lot to do with the regulatory power that the federal government could exercise over artificial intelligence and the trade of digital currencies. Democrats had received strong support from Sam Bankman Fried, the former CEO of the second-largest crypto exchange in the world, before his arrest in 2022. However, some within the Democratic party have begun to speak more forcefully about the need to protect consumers from the illicit and immoral behavior of some within the industry.

Democrats clash over how to approach the regulation of digital currencies

After the collapse of FTX, Democrats have not moved to ban or curtail the trade of crypto but have distanced themselves from the market, requiring leaders in the industry to find new political allies. Additionally, Democratic leaders, like Massachuests Senator Elizabeth Warren, have argued that crypto must be regulated to protect consumers, many of which are normal people and not major firms that can afford to incur substantial losses. Though as the GOP cozies up to the industry, Politico reported that Senator Warren was sold to soften her position as the party grows concerned about other power these groups have in terms of what they can spend before November.

However, Senator Warren points to the millions of digital traders who lost all of their investments when FTX went bankrupt. These assets and exchanges are not protected by the FDIC, meaning that when the institutions fail, hundreds of thousands, and in some cases millions of dollars, can disappear. In the newly released Republican platform, they dedicated a section to AI and crypto titled “Championing Innovation.” The party says that they “will end Democrats’ unlawful and unAmerican Crypto crackdown and oppose the creation of a Central Bank Digital Currency.”

The platform adds that the Republicans will “defend the right to mine Bitcoin” and protect “right to self-custody of their Digital Assets, and transact free from Government Surveillance and Control.”

Republicans oppose regulation of AI

As the Republicans feel about most industries, they believe that the federal government should not regulate AI as it continues to develop. In the platform, they describe President Biden’s executive orders on AI as “dangerous” and that it “imposes Radical Leftwing ideas on the development of this technology.” These claims were not substantiated, and though there is much potential with the development, it will be extremely disruptive, and the White House argues that the order supports the protection of digital, civil, and consumer rights of US citizens.

Republicans open up opportunities for additional contracts to support NASA

For people like Elon Musk, the CEO of Space X, the final component of this section of the platform, under the title, “Expanding Freedom, Prosperity and Safety in Space” will be especially important.

“Under Republican Leadership, the United States will create a robust Manufacturing Industry in Near Earth Orbit, send American Astronauts back to the Moon, and onward to Mars, and enhance partnerships with the rapidly expanding Commercial Space sector to revolutionize our ability to access, live in, and develop assets in Space,” reads the platform. This likely means that additional funding for private contracts to support NASA could increase under a GOP administration and Congress.