President-elect Donald Trump won’t just have a first lady—he now has what Tesla CEO Elon Musk calls a “first buddy.” Musk, who has claimed this title since Trump’s electoral victory, has solidified his closeness to Trump with projects like DOGE. This relationship not only enhances Musk’s influence but also poses significant challenges for his competitors, particularly OpenAI CEO Sam Altman.
Musk, the other big winner. Beyond Trump’s success, Musk appears to be another clear winner of the election. The billionaire reportedly contributed $200 million to Trump’s campaign—a sum he has more than recouped. Tesla’s market capitalization has surged, and SpaceX’s prospects have brightened, bolstered by potential government contracts.
An inseparable duo. According to The Wall Street Journal, Musk has spent considerable time with Trump in recent months, including overnight stays at Trump’s Mar-a-Lago estate in Palm Beach, Florida. Musk has accompanied Trump to key events, including recent discussions with Ukrainian President Volodymyr Zelensky and Alphabet CEO Sundar Pichai.
Altman, persona non grata. Musk’s proximity to Trump may be especially concerning for Altman. A source close to Trump’s family has labeled Altman “persona non grata” following Musk’s public endorsement and re-election support for Trump. This could hinder OpenAI’s efforts to compete with Musk’s xAI, his AI venture. Reports suggest Altman has sought to improve relations with Trump’s inner circle, but as the Journal notes, “nothing has worked too well so far.”
Musk’s other rivals. While Altman may face the most immediate challenges, Musk’s position of influence could impact other tech leaders. His long-standing rivalry with Microsoft co-founder Bill Gates is well known, as is his contentious relationship with Meta CEO Mark Zuckerberg, who Musk famously challenged to an MMA fight. Amazon founder Jeff Bezos, whose aerospace company Blue Origin competes with SpaceX, could also face setbacks.
Concerns over Musk’s influence. Musk’s sway over Trump raises concerns across various industries. In aerospace, preferential treatment for SpaceX could disadvantage competitors like Boeing or Blue Origin. Similarly, in the electric vehicle (EV) market, Trump’s plans to reduce subsidies for EV purchases could impact competitors more severely than Tesla, given Musk’s assertion that Tesla is less reliant on such incentives.
OpenAI vs. xAI. The rivalry between Musk and Altman is particularly pronounced in the AI sector. Musk’s recent legal moves to challenge OpenAI’s transition to a for-profit entity exemplify this competition. Regulation, government adoption of AI technologies, and investment in the field could become areas where Musk’s influence is felt most acutely.
Uncertain future. As Trump prepares to take office in January, Musk’s growing influence remains a wildcard. The early months of Trump’s presidency will likely reveal whether Musk’s privileged position benefits his companies at the expense of his competitors—especially Altman and OpenAI.
Image | Daniel Oberhaus | World Economic Forum
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