California’s Billionaires Pour Cash into Elections as Big Tech Seeks New Political Allies
Silicon Valley’s ultra-wealthy intensify political spending amid upcoming elections and regulatory battles
California’s tech billionaires and industry giants are dramatically increasing their political spending as the state prepares for pivotal elections this November. With Governor Gavin Newsom reaching his term limit, Silicon Valley’s foremost players are mobilizing tens of millions of dollars to influence the political landscape, aiming to fight new taxes and regulations seen as threats to the sector’s ongoing boom.
A Shift in Silicon Valley’s Political Engagement
Traditionally, California’s big tech companies have been somewhat restrained in their state-level lobbying efforts, focusing their influence largely at the federal level. This dynamic is rapidly changing. Major corporations including Google and Meta, alongside venture capitalists, cryptocurrency entrepreneurs, and Palantir’s co-founders, are stepping up their involvement in state politics, seeking to back candidates aligned with their interests and promote an agenda favorable to continued technological innovation without regulatory hurdles.
Political analysts acknowledge 2026 as a landmark “big tech flex” year in California politics. With Newsom—known for his tech-friendly stance and history of vetoing restrictive legislation—exiting, tech insiders see the need to invest heavily in cultivating new allies. One such promising candidate is Matt Mahan, the young, pro-technology mayor of San Jose, who is vying for the governorship.
David McCuan, a political science professor at Sonoma State University, explains that the tech sector is employing a diversified strategy. “Rather than going all-in on one candidate or issue,” he says, “they are donating across a spectrum, from gubernatorial races to local city council and school board campaigns, as well as funding groups advocating for lighter regulation and taxation on AI and other tech innovations.”
Battleground: The California Billionaire Tax Act
The flashpoint for much of the billionaire-backed political spending is the proposed “California Billionaire Tax Act.” This measure would levy a one-time, 5% tax on the assets of any California resident worth more than $1 billion, with revenues earmarked for education, food assistance, and healthcare programs. Sponsored by the Service Employees International Union-United Healthcare Workers West, the ballot initiative could appear before voters this November if enough signatures are gathered.
Prompted by this proposal, tech’s wealthiest have expressed vehement opposition. Several leading figures—including Peter Thiel (Palantir co-founder), Google’s Larry Page and Sergey Brin, and Meta’s Mark Zuckerberg—have purchased residences in no-income-tax states like Florida and Texas, signaling potential relocations away from California.
Peter Thiel has been a particularly active opponent, donating $3 million to the California Business Roundtable, a lobbying group dedicated to defeating the billionaire tax. Other tech figures, like James Siminoff of Ring, have also contributed sizable sums to anti-tax efforts.
Critics of the tax warn that it could spur an exodus of wealthy individuals, thereby diminishing California’s economic competitiveness and ultimately reducing state revenues—an argument echoed by venture capitalists and former tech executives across social media and public commentary.
Governor Newsom himself has pledged to combat the tax, labeling it a threat that would provoke a “race to the bottom” in innovation and investment. He expressed confidence in its defeat, stating, “This will be defeated – there’s no question in my mind.”
The Rise of Super PACs Backed by Big Tech and Crypto
In addition to direct contributions to candidates, the tech sector is increasingly relying on Super Political Action Committees (Super PACs) to shape California’s political future. These entities can receive unlimited donations and allow wealthy donors to exert influence without direct transparency regarding individual contributions.
Remarkably, several new Super PACs have emerged in the last few months, funded with tens of millions from leading tech companies:
Meta launched two major Super PACs in the fall, focusing on reducing AI regulations and supporting pro-tech candidates. Their American Technology Excellence Project received $45 million for multi-state operations, and Mobilizing Economic Transformation Across (Meta) California, focused solely on California, secured $20 million.
Both Meta and Google have contributed $10 million each to California Leads, a committee backing candidates across the state with a broader platform beyond tech-specific issues.
Additionally, the crypto industry has established its presence with Grow California, a Super PAC that launched with an initial $10 million infusion.
Political experts highlight that the use of such committees allows billionaires to operate “behind the scenes,” amplifying their influence while maintaining a veil of opacity over the funding’s origins and goals.
Looking Ahead
As California stands at the crossroads of its political and technological future, the confluence of tech wealth, political contributions, and state policy is poised to shape not only the next governor’s office but the regulatory environment governing the AI boom and digital economy.
Silicon Valley’s billionaires are leveraging their unprecedented fortunes to build new alliances and exert wide-ranging influence—extending from grassroots races to statewide initiatives and ballot measures. Their message to California’s political establishment is clear: preserving the unfettered growth of technology is paramount, and they are prepared to flex their financial muscle to make that vision a reality.
Photo caption: The Google campus in Mountain View, California. Photograph: The Washington Post/Getty Images
Photo caption: Matt Mahan, the San Jose mayor running for California governor. Photograph: Christopher Victorio/Shutterstock
Photo caption: Peter Thiel, co-founder and chair of Palantir, a prominent tech billionaire opposing the proposed billionaire tax. Photograph: Kiyoshi Ota/Bloomberg via Getty Images
