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Elon Musk isn’t the only tech billionaire with power over the federal agencies that regulate his businesses. Since Donald Trump took office, more than three dozen employees, allies, and investors of Musk, Peter Thiel, Marc Andreessen, and Palmer Luckey have taken roles at federal agencies, helping direct billions in contracts to their companies. Companies owned, founded, or invested in by Musk, Thiel, Andreessen, and Luckey have collected more than a dozen federal contracts totaling about $6 billion since Trump’s inauguration in January, according to a Wall Street Journal analysis. And they’re actively pursuing billions more. Those appointments, which are in departments that oversee, regulate, and award business to the four men’s companies, raise a number of red flags. They could violate conflict-of-interest laws or government ethics regulations, both of which prohibit federal employees from using public office for private gain. And while it’s not unusual to install trusted allies in government roles, Musk’s network has moved in at an unprecedented rate and scale. TechCrunch has previously reported on all of the people in Musk’s universe who have joined him at DOGE, where he has shuttered federal agencies and slashed workforces in departments that regulate his businesses. At least 19 others with Silicon Valley connections, be they founders or investors, have also joined DOGE. “The second Trump administration is actually the first in recent years to not impose any sort of additional ethics safeguards on high-level appointees,” Daniel Weiner, director of the Brennan Center’s Elections and Government Program, told TechCrunch. He noted that Trump fired the director of the Office of Government Ethics and 17 inspectors general who served as watchdogs for fraud and abuse, immediately after taking office. “It certainly does potentially increase the risk that you have people working on matters that do impact, at least indirectly, their bottom lines,” Weiner said. “But this is a long-term issue in our government that’s not unique to this administration.” Innovation versus accountability Peter Thiel speaks during the Bitcoin 2022 Conference.Image Credits:Marco Bello / Getty Images Some may argue that it makes sense for employees and associates of Musk, Thiel, Andreessen, and Luckey to join government agencies. Their insiders are talented individuals who are behind the cutting-edge technology the government genuinely needs, and they understand how to innovate quickly and compete globally. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | June 5 REGISTER NOW More serious questions arise when favoritism threatens to undermine competition, when policy is created or destroyed to protect market dominance, or when regulations that would serve the public good are waylaid to promote business interests. For instance, the Consumer Financial Protection Bureau recently retreated from pursuing rules that would restrict data brokers, despite growing privacy concerns — a shift that stands to benefit companies involved in AI, surveillance, and data analytics. Another example is DOGE’s firing of staffers at the National Highway Traffic Safety Administration who investigate autonomous vehicle safety, including several probes into Tesla. “One of the defining structural challenges the government of the United States has right now is that we have a system in which the very wealthiest interests have so much power to shape our elections and then turn around and shape government policy,” Weiner said. Another Silicon Valley appointee, Mike Kratsios — a former Thiel employee — is now leading technology policy for the U.S. government. In an April speech, he spoke about throwing away bad regulations that “weigh down our innovators,” particularly those who are innovating in AI. “Many people in Silicon Valley tend to think that whatever worked in Silicon Valley is also going to work for administering the United States government,” Weiner said. “And as we’re seeing now, the danger is a lot of people are going to get hurt because of the assumptions they make.” “The fact that you had a successful startup after five others failed doesn’t necessarily mean you know how to run the Social Security Administration,” he continued. A network inside and a payoff outside Marc Andreessen, co-founder and general partner of Andreessen Horowitz.Image Credits:David Paul Morris/Bloomberg / Getty Images All of the businesses between Musk, Thiel, Andreessen, and Luckey are related. Musk’s SpaceX was backed by Thiel’s Founders Fund and Andreessen’s a16z (which also invested in X and xAI). Both of those VCs also backed Anduril, Luckey’s defense startup. The overlapping network of founders, funders, and insiders extends into several federal agencies. And in many cases, those agencies are steering billions in federal contracts back to those companies. The Journal found that across Washington, people from Musk’s network, including Tesla, X, and SpaceX, are in more than a dozen agencies, from the executive office of the president and Office of Personnel Management all the way down to the Department of Transportation and the Department of Energy. SpaceX employees are also in agencies that could provide the company new business. For example, the Journal reports that SpaceX senior engineer Theodore Malaska got an ethics waiver in February that lets him take a temporary job at the Federal Aviation Administration while still working at the rocket company. The FAA hasn’t given any contracts to SpaceX yet, but Malaska said on X the agency has used Starlink to upgrade a weather-observing system in Alaska. SpaceX is also the main commercial provider that transports crew and cargo for NASA. Despite national security concerns — like the company’s secret backdoor for Chinese investment and Musk’s reported drug use — SpaceX in April won $5.9 billion of a $13.7 billion multi-year contract from the U.S. Space Force to launch Pentagon missions. The DOD, which is currently a Starlink customer, also plans to buy SpaceX’s Starshield satellites, a militarized version of the internet satellites. Employees at Thiel-backed firms have found themselves in roles in the State Department, the Office of Management and Budget, Health and Human Services, and Social Security, per The Wall Street Journal. Thiel’s Palantir has already been awarded nearly $376 million since 2020 from the Department of Health and Human Services. In 2024, the company was also awarded at least $1.2 billion in Department of Defense contracts in 2024 and is in the running for another $100 million deal. Anduril, Palantir, and SpaceX recently submitted a multibillion-dollar proposal for Trump’s “Golden Dome” missile-defense program, which would also add to Anduril’s existing contracts with the U.S. Army. Recently, Anduril and Microsoft took over a 2021 contract worth up to $22 billion to develop AR headsets, per the Journal. An Anduril executive, Michael Obadal, has been nominated to a top role at the Department of Defense. In his ethics disclosure, he stated that he would retain his Anduril stock if appointed. TechCrunch has reached out to Anduril, Andreessen Horowitz (a16z), Palantir, and SpaceX for comment. “This sort of concentration of private wealth and political power is ultimately very risky for our economy,” Weiner said. “Because instead of the government making decisions that are intended to foster competition, foster economic growth, you run the real risk that government decisions are going to instead be structured around protecting particular companies and particular industries from full economic competition.”

It’s Friday afternoon and I’m listening to Bowdoin College’s radio station, interspersed with ambient car honking noises. I am not in Maine. I am not in a car. I am at my desk. This is Internet Roadtrip. Internet Roadtrip is what I will call an MMORTG (massive multiplayer online road trip game). Neal Agarwal, the game’s creator, calls it a “road-trip simulator.” Every 10 seconds, viewers vote on what direction for the “car” to drive on Google Street View — or, you can vote to honk the horn or change the radio station. The direction with the most votes gets clicked, and the car continues on its scenic path to … wherever the chat decides to go. Internet Roadtrip is reminiscent of Twitch Plays Pokémon, an iconic stream from over 10 years ago in which viewers voted on what button to press as part of a collective Pokémon Red game. But Internet Roadtrip is far less chaotic — both because only a thousand or so people are playing at a time, and because we have better organizational tools than we did in the Twitch Plays Pokémon era (thank you, Discord). A radio station in Maine (WBOR) is currently curating songs for us in the in-game radio — Neal Agarwal (@neal.fun) 2025-05-12T19:56:38.315Z Progress on the virtual roadtrip is slow. The car moves at a pace slower than walking. Discord moderators have had to temper newcomers’ expectations, explaining that it’s pointless to suggest driving to Las Vegas from Maine, since it would likely take almost 10 months of real-world time to get there. The same goes for Alaska, but it’s not just a matter of time that’s the issue. “Google Street View works by taking multiple pictures and putting them together. In some areas of the roads leading to Alaska, there are gaps in pictures available and so we would get stuck there, were we to go to these roads,” the Discord FAQ reads. “All potential roads to Alaska have these gaps. We checked.” There is no objective on Internet Roadtrip, as opposed other Street View-based games like GeoGuessr. Some Discord members discussed driving to Canada, which is a somewhat realistic goal, given our current position in Maine. But the destination isn’t the goal — it’s the joy of spontaneously listening to a college radio from a liberal arts school with a thousand strangers on the internet, while taking in the scenic backroads of Blue Hill, Maine.

Google I/O, Google’s biggest developer conference of the year, is nearly upon us. Scheduled for May 20 to 21 at the Shoreline Amphitheatre in Mountain View, I/O will showcase product announcements from across Google’s portfolio. Expect plenty of news relating to Android, Chrome, Google Search, YouTube, and — of course — Google’s AI-powered chatbot, Gemini. Earlier this week, Google hosted a separate event dedicated to Android updates: The Android Show. The company announced new ways to find lost Android phones and other items, additional device-level features for its Advanced Protection program, security tools to protect against scams and theft, and a new design language called Material 3 Expressive. Here’s what else you can expect. Gemini and AI Image Credits:Thomas Fuller/SOPA Images/LightRocket / Getty Images AI is the tech du jour, and Google, like its rivals, has been investing heavily in it. A shoo-in for I/O is a new addition (or several) to Google’s flagship Gemini family of AI models. Leaks over the past few weeks suggest that an updated Gemini Ultra model is on the way, Gemini Ultra being Google’s top-of-the-line Gemini offering. With this upgraded Gemini Ultra may come a pricier Gemini subscription. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | June 5 REGISTER NOW Google offers a single premium tier, Gemini Advanced ($20 per month), to unlock additional capabilities in its Gemini chatbot, which is powered by the company’s Gemini models. But Google may soon launch two new plans, Premium Plus and Premium Pro. It’s not yet clear what benefits might be attached and how these plans might be priced relative to Gemini Advanced. Google will almost certainly talk about Astra, its wide-ranging effort to build AI apps and “agents” for real-time, multimodal understanding. Also probably on the agenda is Project Mariner, Google’s AI “agents” that can navigate and take action across the web on a user’s behalf. Folks on X spotted references to “Computer Use” in the code for Google’s AI Studio developer platform, which could well pertain to Mariner. Everything else Going by the official I/O schedule, Google will have plenty to discuss following The Android Show and I/O keynote addresses. The schedule lists sessions dedicated to Chrome and Google Cloud, Google Play (the Android app store), Android development tools, and Gemma, Google’s collection of “open” AI models. Last year, Google unveiled a few AI-themed surprises at I/O, including a set of models fine-tuned for education applications called LearnLM. An upgrade to Google’s viral podcast-generating NotebookLM could be one such surprise. Leaked code reveals a “Video Overviews” tool that presumably would create video summaries, most likely leveraging Google’s Veo 2 video-generating model. Updated: 3:19 p.m. Pacific: Added a list of new Android features announced during The Android Show.

OpenAI is poised to help develop a staggering 5-gigawatt data center campus in Abu Dhabi, positioning the company as a primary anchor tenant in what could become one of the world’s largest AI infrastructure projects, according to a new Bloomberg report. The facility would reportedly span an astonishing 10 square miles and consume power equivalent to five nuclear reactors, dwarfing any existing AI infrastructure announced by OpenAI or its competitors. (OpenAI has not yet returned TechCrunch’s request for comment, but to put that into perspective, that’s bigger than Monaco.) The UAE project, developed in partnership with G42 — an Abu Dhabi-based tech conglomerate — is part of OpenAI’s ambitious Stargate project, a joint venture announced in January that could see OpenAI, SoftBank, and Oracle build massive data centers around the globe stocked with powerful computer chips to support AI development. While OpenAI’s first Stargate campus in the U.S. — already under development in Abilene, Texas — is expected to reach 1.2 gigawatts, this Middle Eastern counterpart would more than quadruple that capacity. The project is emerging amid broader AI ties between the U.S. and UAE that have been years in the making, and have made some lawmakers nervous. OpenAI’s relationship with the UAE dates back to a 2023 partnership with G42 aimed at driving AI adoption in the Middle East. During a talk earlier that same year in Abu Dhabi, OpenAI CEO Sam Altman praised the UAE, saying it “has been talking about AI since before it was cool.” As with much of the AI world, these relationships are… complicated. Founded in 2018, G42 is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security advisor and younger brother of the country’s ruler. Its embrace by OpenAI raised concerns in late 2023 among U.S. officials, who feared that G42 could enable China’s government to gain access to advanced U.S. technology. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | June 5 REGISTER NOW These concerns focused on G42’s “active relationships” with blacklisted entities, including Huawei and Beijing Genomics Institute, as well as ties to individuals connected to China’s intelligence efforts. Following pressure from U.S. lawmakers, G42’s CEO told Bloomberg in early 2024 that the company was shifting its strategy, saying: “All of our China investments that were previously made are already divested. Because of that, of course, we have no need anymore for any physical China presence.” Soon after, Microsoft — a major shareholder in OpenAI with its own broader interests in the region — announced a $1.5 billion investment in G42, and its president, Brad Smith, joined G42’s board of directors.

Sonali De Rycker, a general partner at Accel and one of Europe’s most influential venture capitalists, is bullish about the continent’s prospects in AI. But she’s wary of regulatory overreach that could hamstring its momentum. At a TechCrunch StrictlyVC evening earlier this week in London, De Rycker reflected on Europe’s place in the global AI race, balancing optimism with realism. “We have all the pieces,” she told those gathered for the event. “We have the entrepreneurs, we have the ambition, we have the schools, we have the capital, and we have the talent.” All that’s missing, she argued, is the ability to “unleash” that potential at scale. The obstacle? Europe’s complex regulatory landscape and, in part, its pioneering but controversial Artificial Intelligence Act. De Rycker acknowledged that regulations have a role to play, especially in high-risk sectors like healthcare and finance. Still, she said she worries that the AI Act’s broad reach and potentially stifling fines could deter innovation at the very moment European startups need space to iterate and grow. “There’s a real opportunity to make sure that we go fast and address what we’re capable of,” she said. “The issue is that we are also faced with headwinds on regulation.” The AI Act, which imposes stringent rules on applications deemed “high risk,” from credit scoring to medical imaging, has raised red flags among investors like De Rycker. While the goals of ethical AI and consumer protection are laudable, she fears the net may be cast too wide, potentially discouraging early-stage experimentation and entrepreneurship. That urgency is amplified by shifting geopolitics. With U.S. support for Europe’s defense and economic autonomy waning under the current Trump administration, De Rycker sees this moment as a decisive one for the EU. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | June 5 REGISTER NOW “Now that Europe is being left to fend [for itself] in multiple ways,” she said, “we need to be self-sufficient, we need to be sovereign.” That means unlocking Europe’s full potential. De Rycker points to efforts like the “28th regime,” a framework aimed at creating a single set of rules for businesses across the EU, as crucial to creating a more unified, startup-friendly region. Currently, the mishmash of labor laws, licensing, and corporate structures across the countries creates friction and slows down progress. “If we were truly one region, the power you could unleash would be incredible,” she said. “We wouldn’t be having these same conversations about Europe lagging in tech.” In De Rycker’s view, Europe is slowly catching up, not just in innovation but in its embrace of risk and experimentation. Cities like Zurich, Munich, Paris, and London are starting to generate their own self-reinforcing ecosystems thanks to top-tier academic institutions and a growing base of experienced founders. Accel, for its part, has invested in over 70 cities across Europe and Israel, giving De Rycker a front-row seat to the continent’s fragmented but flourishing tech landscape. Still, on Tuesday night, she noted a stark contrast with the U.S. when it comes to adoption. “We see a lot more propensity for customers to experiment with AI in the U.S.,” she said. “They’re spending money on these kinds of speculative, early-stage companies. That flywheel keeps going.” Accel’s strategy reflects this reality. While the firm hasn’t backed any of the major foundational AI model companies like OpenAI or Anthropic, it has focused instead on the application layer. “We feel very comfortable with the application layer,” said De Rycker. “These foundational models are capital intensive and don’t really look like venture-backed companies.” Examples of promising bets include Synthesia, a video generation platform used in enterprise training, and Speak, a language learning app that recently jumped to a $1 billion valuation. De Rycker (who dodged questions about Accel’s reported talks with another big name in AI), sees these as early examples of how AI can create entirely new behaviors and business models. “We’re expanding total addressable markets at a rate we’ve never seen,” she said. “It feels like the early days of mobile. DoorDash and Uber weren’t just mobilized websites. They were brand new paradigms.” Ultimately, De Rycker sees this moment as both a challenge and a once-in-a-generation opportunity. If Europe leans too heavily into regulation, it risks stifling the innovation that could help it compete globally – not just in AI, but across the entire tech spectrum. “We’re in a supercycle,” she said. “These cycles don’t come often, and we can’t afford to be leashed.” With geopolitical uncertainty rising and the U.S. increasingly looking inward, Europe has little choice but to bet on itself. If it can strike the right balance, De Rycker believes it has everything it needs to lead. Asked by an attendee what EU founders can do to be more competitive with their U.S. counterparts, she didn’t hesitate. “I think they are [competitive],” she said, citing companies Accel has backed, including Supercell and Spotify. “These founders, they look no different.” You can catch catch the full conversation with De Rycker here :

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