Silicon Valley venture capitalists who donated hundreds of millions to Trump are bracing for a sea change in tech.
"I think there's going to be a renaissance of innovation in America and we're going to do more in four years than we've done the last 40 years," Shervin Pishevar, a venture capitalist, told Yahoo Finance. "So buckle up. It's gonna be pretty, pretty exciting to see."
In June, Pishevar co-hosted a Trump fundraiser at the home of entrepreneur, podcaster, and investor David Sacks that raised $12 million in one day. Trump's reelection ticket was also bankrolled by Silicon Valley heavyweights like Marc Andreessen and Peter Thiel. Prior to politics, the vice president-elect, Ohio Senator JD Vance, also had a short stint in VC and has close ties to Thiel.
Vice President Kamala Harris, who rise to political prominence in the Bay Area, had the backing of nearly 900 venture capitalists in a movement dubbed "VCs for Kamala." Supporters included Mark Cuban, Vinod Khosla, Ron Conway, and Reid Hoffman. Still, that wasn't enough.
"I think it's really important to highlight that there is an internal conversation happening in Silicon Valley," Stephen DeBerry, VC and Harris supporter, said.
"Who are we building for? My proposed answer to that question is simple: It's everyone. Because we have the capacity to do that. We can do that, and that's what great nations do. If we answer that question the wrong way and build for some, but not all, I fear for the future of this country."
Most investors and founders Yahoo Finance spoke to expect Trump 2.0 to help clear regulatory hurdles, making it easier to innovate and sell their companies. Some said their frustrations with Democratic policies boiled down to higher taxes, overregulation, and antitrust laws.
"The tech ecosystem is going to grow really fast — much faster than the last four years," Pishevar said. "It's been stalled the last four years. VC's have had difficulty raising capital and I think things are going to change. We're really excited about those changes."
President-elect Donald Trump takes the stage following early results from the 2024 presidential election in Palm Beach County Convention Center, in West Palm Beach, Fla., Nov. 6, 2024. (REUTERS/Callaghan O'Hare/File Photo) ·Reuters / Reuters
Among Trump's early agenda may be to undo President Biden's executive order on AI. He also said he plans to install a sweeping tariff policy: 10%-20% on all imports, and an additional 60%-100% on Chinese goods.
"I was in a board meeting today and one of my companies uses raw products that come from China — paper products that are printed there," DeBerry said. "So we feel like we are immediately subject to some kind of impact due to tariffs. That is going to flow through to pressure on consumers, unfortunately."
Despite the fears by some, Wall Street has rallied hard this week following Trump's victory. The gains have been led by big-cap tech names such as Nvidia (NVDA).
"The markets are a signal of what's coming," Pishevar said. "I think we're going to have an economic boom, we'll control inflation, create a lot of jobs."
Tesla (TSLA) CEO Elon Musk, who also owns X (formerly known as Twitter), SpaceX, Neuralink, and generative AI startup xAI, has donated more than $130 million to the Trump campaign.
Following the win, his net worth rose by more than $20 billion as shares of Tesla jumped nearly 15% on Wednesday. In his victory speech, Trump praised Musk as a "new star" and "super genius."
“We have to protect our super geniuses,” Trump told the crowd on election night. While Trump and Musk have so far dismissed the idea that Musk would hold an official government position, it's speculated that Musk will be an influential adviser.
"I think America needs to be run like a startup," Pishevar said about Musk's role. "And Elon is the best entrepreneur that we've ever had."
Musk has championed the idea of helming a "Department of Government Efficiency" (DOGE). "We're going to get the government off your back and out of your pocketbook," Musk said at a Trump rally in New York City last month.
He added he could slash at least $2 trillion from the US budget. According to the Treasury Department, the federal government spent $6.75 trillion in fiscal year 2024.
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While Trump didn't say much about AI during his campaign, a second presidency could mean a shakeup in the AI leaderboard.
"AI is going to accelerate so fast we're going to reach AGI or super intelligence within the next two to three years," Pishevar said. "I think there will be Manhattan projects for AI, quantum computing, biotech."
Musk's xAI would benefit from light-touch legislation, though Musk has been a supporter of some AI regulation, including California's controversial AI bill that was vetoed by Governor Gavin Newsom.
While Silicon Valley remains split on its tech vision for the Trump presidency, DeBerry said it's not about politics.
"If we can come to a consensus that we actually care about building a great society, then I'm excited in that context," DeBerry said. "So the question isn't about technology. The question isn't about economic capability. The question is about our will."
Yasmin Khorram is a Senior Reporter at Yahoo Finance. Follow Yasmin on Twitter/X @YasminKhorram and on LinkedIn. Send newsworthy tips to Yasmin: [email protected]
