Tensions among Silicon Valley’s top executives have escalated as political disagreements have turned personal, especially among members of the so-called “PayPal Mafia.” Prominent tech billionaires, including Elon Musk and Reid Hoffman, have been openly clashing over politics, leading to public feuds that reflect deeper divisions within the tech industry.
The conflict became particularly heated when David Sacks, a venture capitalist, reacted angrily to an assassination attempt on former President Donald Trump. Sacks blamed the incident on the political climate fostered by critics like Hoffman, a major Democratic donor who had funded a lawsuit against Trump. Musk also weighed in, echoing Sacks’ sentiments on social media.
These public disputes mark a significant shift from Silicon Valley’s traditionally private disagreements. Once close colleagues, members of the “PayPal Mafia” — a group of tech executives who worked together at PayPal in the 1990s — are now publicly attacking each other. This group includes Musk, Hoffman, Sacks, and investor Peter Thiel.
Other prominent figures in the tech industry have been drawn into the fray, including Vinod Khosla, Marc Andreessen, and Ben Horowitz of the venture firm Andreessen Horowitz. Historically, such conflicts were kept out of the public eye to avoid jeopardizing business relationships, but that seems to be changing.
Roger McNamee, a venture capitalist, noted that until recently, there was a “code of silence” in Silicon Valley, where disagreements were rarely aired publicly. However, this unspoken rule appears to be fading as political divisions grow sharper.
The recent attacks follow Sacks’ lavish fundraiser for Trump in San Francisco, which prompted Hoffman to criticize him for supporting a “convicted felon” and succumbing to “pro-Trump groupthink.” At a conference in Sun Valley, Idaho, Hoffman and Thiel had a heated exchange over Trump, further fueling the animosity.
The assassination attempt on Trump has only intensified the rhetoric. Sacks and Musk have used the incident to criticize Hoffman, who responded by highlighting the shifting stances of some Trump supporters, including Sacks, who had previously distanced themselves from Trump after the January 6 Capitol riot.
The political rifts are also evident in other parts of the tech community. Siri Srinivas, an investor at Gradient Ventures, noted that many tech investors and entrepreneurs were galvanized by President Biden’s withdrawal from the race and Vice President Kamala Harris’s presumptive nomination, prompting them to vocalize their support for Harris and opposition to Trump.
David Sacks continued his attacks, labeling Netflix founder Reed Hastings, a major Democratic donor, as a “useful idiot” for his political stance. Meanwhile, some tech leaders, like Mark Zuckerberg, have chosen to stay out of the political spotlight, potentially to maintain better relations in Washington.
Despite the political discord, some industry veterans, like Vinod Khosla, believe that these disagreements will not lead to lasting divisions in Silicon Valley, where innovation is the ultimate priority. Khosla emphasized his willingness to collaborate with anyone who shares his vision for impactful technological advancements.
