Tech Industry's Strategic Moves Post Trump-Musk Rift

ICARO Media Group
Politics
08/06/2025 13h12

### Tech Industry Keeps Strategizing Amid Trump-Musk Rift

In the aftermath of a public spat between President Donald Trump and Elon Musk, Silicon Valley's leading figures are pivoting their focus to strategic wins rather than engaging in controversies. On what could have been a momentous day for the tech sector’s ties with Washington, cryptocurrencies, artificial intelligence, and defense companies were busy securing their foothold.

Unexpectedly, a cryptocurrency firm that had been previously stifled by the Biden administration went public on the New York Stock Exchange, with its shares surging by 200 percent. Additionally, an artificial intelligence company introduced a new product aimed at bolstering national security, while defense start-up Anduril amassed $2.5 billion to expand its Pentagon contract initiatives.

These business moves underscore a shift among the tech elite who prefer to stay behind the scenes, carefully navigating an environment that has been notably beneficial under the Trump administration. While Elon Musk aimed for sweeping governmental reforms, other tech leaders and investors are narrowly targeting a favorable regulatory atmosphere—and they seem to be successfully ingratiating themselves with Washington.

Over the past year, Silicon Valley has entrenched itself in Washington's corridors of power, apart from Musk's influence. Key players such as former Uber executive Emil Michael and tech investor David Sacks have secured influential positions within the Pentagon and the White House, respectively, solidifying the tech community’s stance on cryptocurrency, artificial intelligence, and defense.

Despite Musk’s fallout and his fiery efforts to cut government spending, other tech magnates are witnessing their investments in political relationships paying off. For instance, Palantir, co-founded by Peter Thiel, has procured hundreds of millions of dollars in new contracts, including some with the Pentagon. This follows Trump’s annulment of a Biden-era executive order restricting AI, a decision celebrated by Trump's tech supporters.

However, the Trump-Musk break and the uncertain future of the tech industry’s alliance with the White House remain sensitive topics for many in Silicon Valley. Numerous individuals who previously stood by Musk are now questioning the coalition’s durability.

Speaking anonymously, a tech executive in the aerospace sector expressed that the discord between Trump and Musk was inevitable but will likely have little impact on the broader agenda. On the other hand, for some, Musk’s presence and influence were seen as pivotal.

Immigration policies first exposed cracks in the tech-MAGA coalition, and recent Trump administration measures on student visas and science grants have caused further rifts. Yet, new fault lines, particularly the imposition of tariffs, have had tech leaders reassessing their strategies.

Even amidst these schisms, tech moguls recognize the importance of staying aligned with Trump for now. As quieter strategies are perceived to yield substantial benefits, many tech figures are choosing to remain silent on the Trump-Musk discord, especially with the absence of immediate electoral pressures.

Silicon Valley has seen a shift from Musk’s revolutionary aspirations to a more pragmatic approach. While the Trump-Musk relationship might be strained, the tech industry continues to forge ahead, capitalizing on its deeper ties with the current administration for future gains.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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