Technology — Elon's loyalty test

Welcome to The Hill's Technology newsletter

View Online Technology Technology The Big Story  Stargate criticism tests Musk loyalty under Trump 2.0 Elon Musk's criticism of a Trump-backed AI infrastructure project is testing how the CEO will balance his personal conflicts in the tech space with President Trump's interests. © Chip Somodevilla/Pool Photo via AP Musk, a fierce Trump ally, appeared to break from the president less than two days after Trump was sworn back into office when the SpaceX CEO poured cold water over the new Stargate venture.   Stargate, which Trump announced on Tuesday, involves Sam Altman, Musk's former business partner-turned rival who is the co-founder and CEO of OpenAI. Musk has lobbed barbs at Altman on X for days.   "He is letting this issue [with OpenAI] get in the way of his relationship with Trump," said Darrell West, a senior fellow at the Center for Technology Innovation at the Brookings Institution.     The president said Thursday he's unbothered by Musk's public criticism of the artificial intelligence (AI) project, and alluded to the years of tensions between his close adviser and Altman.   "No, it doesn't. He hates one of the people in the deal," Trump told reporters in the Oval Office when asked if Musk's criticism bothered him.    "I've spoken to Elon. I've spoken to all of them, actually. The people in the deal are very, very smart people," Trump continued. "But Elon, one of the people in the deal he happens to hate, but I have certain hatreds of people too."    While Trump shrugged off the defection Thursday, some observers said Musk continuing to publicly disagree may not bode well for him, given the president's history with those who disagree with his policies.     "One thing that we do know is that Trump does not like to be undermined or overshadowed by anybody around him. So, my sense is that that may work for Musk in the short term, but not in the long term," Democratic strategist Basil Smikle told The Hill.     The Stargate project was announced by Trump alongside Altman, Oracle founder Larry Ellison and SoftBank CEO Masayoshi Son this week.   It pledges to invest up to $500 billion in building the infrastructure for AI development and maintenance over the next four years.     Musk claimed the initial investors — OpenAI, SoftBank and Oracle — do not have the money to come up with the project, sparking an online back-and-forth over the promises lauded by Trump.     Read more in a full report at TheHill.com. Welcome to The Hill's Technology newsletter, we're Julia Shapero and Miranda Nazzaro — tracking the latest moves from Capitol Hill to Silicon Valley. Did someone forward you this newsletter? Subscribe here. Essential Reads  How policy will be impacting the tech sector now and in the future: Comer investigating crypto 'debanking' House Oversight and Accountability Committee Chair James Comer (R-Ky.) said Friday he is investigating the alleged "debanking" of cryptocurrency firms, reaching out to venture capitalist Marc Andreessen and five crypto CEOs who have publicly raised concerns.  Debanking has become a flash point in the crypto space since Andreessen claimed on "The Joe Rogan Experience" in November that he knew 30 tech founders who had been the …  Full Story Meta nearly doubling spending with eye toward AI Meta CEO Mark Zuckerberg announced Friday the social media company will nearly double its spending this year as it focuses on artificial intelligence (AI) development. Meta is planning to invest $60 billion to $65 billion in 2025, Zuckerberg said Friday in a post on Facebook. The spending plan marks a sharp increase from the about $40 billion Meta reportedly spent last year. “We’re planning to invest $60-65B in …  Full Story Warren sends Musk 30 ideas for DOGE to cut government spending Sen. Elizabeth Warren (D-Mass.) sent tech billionaire Elon Musk 30 ideas for how the newly formed Department of Government Efficiency (DOGE) could cut government spending.  Warren’s Thursday letter to Musk, President Trump's close ally and the commission's chair, recommended that he consider numerous progressive policy proposals, including allowing Medicare to negotiate lower drug prices, renegotiating Department …  Full Story The Refresh  News we've flagged from the intersection of tech and other topics: SEC rescinds Biden-era crypto rule The Securities and Exchange Commission (SEC) has rolled back a controversial Biden-era rule, Staff Accounting Bulletin 121, that required banks to treat cryptocurrencies as a liability on their balance sheets, CNBC reported. Google to crack down on fake reviews in UK Google is taking steps to combat fake online reviews in the United Kingdom, as part of an agreement with the country's antitrust regulator following a five-year probe, TechCrunch reported. In Other News  Branch out with other reads on The Hill: Massachusetts Democrats ask regulators to open Trump meme coins probe Two Massachusetts Democrats sent a letter to various regulators asking them to open an investigation into President Trump’s and first lady Melania Trump’s recently launched meme coins. The letter, signed by Sen. Elizabeth Warren (D-Mass.) and Rep. Jake Auchincloss (D-Mass.), was sent to the Office of Government Ethics, the Department of the Treasury, the Securities and Exchange Commission and the Commodity Futures … Full Story Trump says he will use energy emergency declaration to approve more power for AI President Trump said Thursday that he will use his energy emergency declaration to approve power stations for artificial intelligence (AI) centers. Speaking at the World Economic Forum, Trump said: "We're going to make it so that the plants will have their own electric generating facilities attached right to their plant. They don't have to worry about a utility" He said the emergency declaration would enable approval of … Full Story What Others are Reading  Two key stories on The Hill right now: Feds implement 'Gulf of America,' 'Mount McKinley' name changes The federal government is formally implementing President Trump's directive to rename the Gulf of Mexico and Denali. The Interior Department issued … Read more Trump had 'fiery' call with Danish Prime Minister over Greenland: Report President Trump reportedly held a "fiery" call with Denmark's Prime Minister Mette Frederiksen over the president's insistence that U.S. control of … Read more What Others are Reading  Opinions related to tech submitted to The Hill: TikTok fight sets the tone for US-China relations under Trump 2.0   You're all caught up. See you next week!  Check out The Hill's Technology page for the latest coverage. Like this newsletter? Take a moment to view our other topical products here 📩 Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  400 N Capitol Street NW Suite 650, Washington, DC 20001 Copyright © 1998 - 2025 Nexstar Media Inc. | All Rights Reserved.

If you believe this has been sent to you in error, please safely unsubscribe.