Musk's administration allies become targets

Yahoo

2 days ago

Elon Musk's allies inside the Trump administration are newly vulnerable after the mogul's bitter public breakup with the president.
MAGA loyalists are taking advantage of the Trump-Musk rift to threaten the standing of anyone in the administration who's perceived as too close to the Tesla CEO. Leading that charge is former Trump adviser Steve Bannon, whose long-running animosity toward Musk peaked last week with the former calling to deport Musk from the US and the latter deeming Bannon a 'Communist retard.'
Among the potential Bannon targets: David Sacks, the venture capitalist tapped by Trump as artificial intelligence and cryptocurrency czar. Sacks has invested in Musk's SpaceX and, like Musk, is a member of the so-called PayPal Mafia (early PayPal employees and founders who are a Silicon Valley force).
'You're dangerous. It's all about you, not the country,' Bannon recently said on his War Room podcast of Sacks and his All-In Podcast co-hosts.
But the administration's close ties to the crypto industry and Sacks' help to the Trump campaign mean he's likely to avoid the chopping block.
'As a trusted ally and early supporter of President Trump, David Sacks sacrificed a thriving entrepreneurial career to serve as the President's AI and Crypto Czar,' White House spokesman Harrison Fields said in a statement, adding that Sacks 'is deeply committed to advancing the president's vision' on both issues.
That leaves lesser-known figures brought in by Musk to bear the brunt of the speculation about more exits — talk that Silicon Valley is monitoring closely, and with good reason.
One person familiar with the situation told Semafor that there are ongoing conversations inside the administration 'regarding the future of some of these big names that came to the federal government in that wave of Elon coming here.'
This person described possible forthcoming departures as more of a 'mutual separation' than a forced ouster. A number of Musk allies are still working with the Department of Government Efficiency, and officials are said to be cognizant of those who may now have conflicts of interests or dualing loyalties.
The White House's longer-term goal in the wake of the Trump-Musk spat is to underscore that DOGE 'isn't just a fad,' this person added, and some in the administration are discussing ways to separate its mission from 'the personality behind the original initiative.'
'Maybe we don't call it DOGE,' the person suggested. 'The mission is what we want to stay focused on.'
Sacks hosted Trump for a fundraiser last summer at his home on San Francisco's Billionaire Row, cementing his role as a tech industry conduit to the White House. He's got a rare office in the White House complex, two sources told Semafor, and is playing a lead role in shepherding crypto legislation through Congress — as well as drafting a long-awaited administration report, expected in July, that will shape other industry-friendly policies.
Sacks 'brought Silicon Valley to the table with him well before Musk jumped on board' the Trump campaign, one tech industry insider said. Since then, 'he has avoided all of the third rails that Musk grabbed' by focusing his efforts on cementing crypto-friendly policy and competing with China on AI.
That hasn't stopped Bannon from going after him, particularly after the All-In podcast — co-hosted by Sacks and a favorite stop for administration officials — scrapped plans to release an episode about the Trump-Musk battle.
'Folks like Bannon are trying to drive a wedge between tech right and MAGA right,' said one crypto executive, who was granted anonymity to speak candidly. 'I don't see it sticking.'
A spokesperson for the White House Office of Science and Technology Policy, where part of Sacks' work is housed, did not respond to requests for comment.
A number of other top DOGE staffers departed the administration when Musk did, including Katie Miller — the wife of Trump's influential deputy chief of staff, Stephen Miller. It's clear that, even before Trump and Musk traded barbs last week, the administration expected a shift in staff once the tech mogul left Washington.
But any remaining administration players who are tied to Musk can't be breathing entirely easy yet, given that conversations are ongoing about how to shape DOGE more in Trump's image than his former friend's.
In that sense, the MAGA right may not have to push too hard to get some people Musk hired out of the administration.
Still, it seems unlikely Bannon will succeed in expanding his manhunt to people as senior as Sacks, who was Team Trump long before Musk — and who has ties to industries like crypto that the administration wants to keep close.
Bannon will need the backing of much heavier hitters if he wants to bring down Sacks.
Bannon and his wing of the GOP — including agitator Laura Loomer — have proved more influential than initially predicted.
'Influence comes from the people. When you have the people's support, you're influential,' Rep. Marjorie Taylor Greene, R-Ga., said in February. 'He's a big voice of MAGA, and that's helpful for the President's agenda. He's someone that pushes back when people aren't in line.'
Some DOGE staffers are worried about being cut in the wake of the Trump-Musk feud, The Wall Street Journal recently reported.
Trump and his administration remain firmly behind DOGE's efforts despite the drama with Musk himself, The New York Times reported.
Trump pulled NASA administrator nominee Jared Isaacman, a Musk ally, shortly after the tech billionaire left the White House, Semafor scooped.