How the PayPal Mafia Looks Set to Dominate the New Trump Administration | Global News Avenue

With Elon Musk appointed to lead the new Department of Government Effectiveness (DOGE), and David Sacks appointed as Cryptocurrency and Artificial Intelligence (AI) Director in the incoming Trump administration ) czar, Silicon Valley’s influential “PayPal Mafia” has gained immense power in the new administration. administrative.

The term “PayPal Mafia” was originally coined by wealth The magazine profiled influential former PayPal founders and managers in 2007 who went on to create or invest in numerous successful technology companies. The informal network has since evolved from a power player in Silicon Valley to a potential architect of U.S. policy.

What is PayPal Mafia

PayPal Holdings Inc. (PYPL) emerged during the Internet boom of the late 1990s, meeting the need to make online payments more efficient. As a natural complement to online auctions, the company was acquired by eBay Inc. (eBay) in 2002 was US$1.5 billion. The sale disperses a group of entrepreneurs who would go on to help reshape the tech world before venturing into politics.

Their experience building PayPal revealed to them what they said was excessive regulation and bureaucratic pushback, helping to shape a libertarian-leaning political philosophy that they say now shapes their relationship with the government (although they helped form There are a lot of government contracts between each company)).

This network is not limited to the original PayPal founders and employees. Their wider network of influence includes figures such as Jim O’Neill, the former CEO of the Thiel Foundation who was appointed by Trump to be deputy secretary of the Department of Health and Human Services; and Founders Fund partner Trey Trae Stephens is being considered for deputy defense secretary; Thiel’s former chief of staff, Michael Kratsios, is handling science and technology policy during the transition.

Even Vice President-elect J.D. Vance (who worked for Thiel’s Mithril Capital and whose political career was heavily encouraged and supported by Thiel) is an extension of the network’s growing political influence.

Peter Thiel

Thiel was a co-founder of PayPal and an early investor in Facebook, later creating the venture capital firm Founders Fundand Palantir Technologies Inc. (PLTR), while slowly becoming one of the most influential figures in conservative politics. An early supporter and adviser to Trump, the libertarian-leaning Thiel has positioned himself as a bridge between Silicon Valley and conservative politics.

As an investor in many technology companies BitcoinThiel will benefit from deregulation in the tech industry and pro-cryptocurrency policies. He also supports free trade, tighter immigration policies and a more confrontational stance toward China.

Elon Musk

although Elon Musk’s His relationships with politicians have grown into his own — he spent hundreds of millions on former Donald Trump’s 2024 campaign, speaking on his behalf, and now actively campaigning for Donald Trump, threatening those Republicans who disagree on certain policies emphasized his political involvement. As CEO of Tesla (Tesla), X (formerly Twitter) and SpaceX, Musk has had a major influence on social media, electric vehicles, space policy and artificial intelligence. Additionally, his company has secured billions of dollars in U.S. government contracts in recent years, giving him a vested interest in shaping policy.

Musk has publicly advocated for reduced government spending and greater transparency, consistent with his political activity, leading to Trump appointing him as DOGE co-leader with Trump Vivek Ramaswamy. (It’s worth noting that Musk is also an outspoken supporter of the Dogecoin cryptocurrency, which shares the same abbreviation.) Musk has pledged to cut $2 trillion from the federal budget. However, the Governor’s Office is not an official government department and Congress has exclusive authority over the federal budget, and analysts generally believe such ambitious cuts are unrealistic.

david sachs

sackPayPal’s predecessor Chief Operating Officer (COO) As a longtime venture capitalist, he has become a key voice on technology policy. His expertise in technology and finance makes him particularly influential in discussions about cryptocurrency regulation and the regulation of the tech industry, particularly artificial intelligence. Trump named him the new “artificial intelligence and cryptocurrency czar.”

Sachs, who is also an investor in Palantir and SpaceX, has called for less regulation of technology companies and has been critical of traditional financial institutions, suggesting he will push for policies that would benefit cryptocurrency companies.

bottom line

The convergence of Silicon Valley players at the height of their political power marks a new chapter in American governance. These tech industry veterans appear poised to shape national policy in a second Trump administration. Their success or failure could have lasting consequences for the tech industry, American governance, and the daily lives of the American people. As investors in a range of major tech companies and cryptocurrencies, they also stand to reap huge financial rewards if their policy ideas are implemented.