Business
Column: RFK Jr. is a reactionary crackpot — and that’s why the tech elite love him
Silicon Valley’s archetypal hero is the founder of humble beginnings — he who, through grit, sweat and genius, unleashes a world-changing idea from his garage. It’s hard to imagine someone more antithetical to that formula than a scion of the most powerful political dynasty in the nation. Yet Robert F. Kennedy Jr., notorious anti-vaccine crusader and presidential candidate, is the toast of the town among the elite tech set.
He’s been championed by Twitter founder Jack Dorsey, promoted on a live audio event hosted by Elon Musk, and embraced by the venture capitalist podcasters David Sacks and Chamath Palihapitiya, who not only endorsed Kennedy for the Democratic nomination, but also threw him a fundraiser. LimeWire creator Mark Gorton set up a super PAC with $500,000 that has been buying up newspaper ads for the candidate.
So why would Silicon Valley, which ostensibly prides itself on disruption and looking to the future, embrace a figure who not only oozes old money and hails from the most established of political establishments, but holds starkly anti-tech and anti-science views?
Why, just a decade and a half after embracing the Obama-Biden ticket — in 2008, the chief executive of Google stumped for Obama, Musk sent in donations and a Facebook co-founder left the company to work for his campaign — are the loudest voices in Silicon Valley throwing their weight behind a man who just claimed that Wi-Fi causes cancer and whom the New York Times described as “a headache for Biden”?
The answers reveal quite a bit both about the state of our politics — and the state of our tech titans.
The first reason is pretty obvious: COVID and vaccine denialism is in vogue with a prominent subset of Silicon Valley’s power players.
Kennedy has spent the last two decades as one of the leading voices for the anti-vaccine movement, alleging a (spurious) link between vaccines and autism. So, when COVID rolled around, and that particular brand of skepticism found much wider purchase, RFK Jr. was ready for prime time. He was kicked off Instagram for spreading misinformation but embraced by figures such as Tucker Carlson, as the right’s dalliance with anti-vax politics bloomed.
That was also around the time when Musk became a prominent COVID skeptic, too; in the early days of the pandemic Musk tweeted that “the coronavirus panic is dumb,” predicted that we’d be headed to “zero new cases” by the end of April 2020, and even initially refused to close a Tesla plant as those cases stubbornly mounted. Since then, even after being proven demonstrably wrong, Musk has stuck to a similar strain of reactionary COVID politics that, if not necessarily descended directly from the right’s vociferous anti-mask rallying, is of a stripe with it.
Dorsey, the Silicon Valley figurehead who has most fully endorsed Kennedy, too has been cozying up to anti-vaccine views of late, although he’s long embraced other questionable health fads and self-styled gurus. In his first interview since Musk took control of Twitter, he explained that he only became aware of Kennedy earlier this year. Dorsey told the hosts of the “Breaking Points” show on YouTube that he became dedicated to Kennedy’s candidacy after “I kind of went through all his podcasts — almost every episode.”
Less mainstream tech figures, such as LimeWire’s Gorton and InfoSeek founder Adam Kirsch, have fully embraced the anti-vax movement, and RFK Jr., too. Now, dubious scientific beliefs have not exactly been rare in the region — the founding president of Stanford, David Starr Jordan, was a leading eugenicist, after all — but for the last few decades, Silicon Valley’s most public figures have worked to cultivate an air of science-based beneficence.
Those days appear to be past, and Silicon Valley’s most visible celebrities — most notably Musk and his cohort — are openly turning to dark, conspiratorial and reactionary ideas, rather than trying to sell the public on an optimistic brand of “don’t be evil” future making. That drift aligns rather naturally with Kennedy’s current MO.
The second reason we’re seeing a surge of tech exec interest in Kennedy is even duller: political gamesmanship.
Sacks, one of Musk’s biggest boosters and a full-throated supporter of GOP presidential candidate Ron DeSantis, probably has political reasons for backing Kennedy’s primary effort — he’s a lifelong Republican, and a leading donor to the effort to recall Gavin Newsom. Not much of a COVID skeptic himself, and not a natural ally of Kennedy’s anti-corporate views, Sacks is evidently helping to prop up Kennedy because he knows it’s embarrassing to President Biden to see a challenger polling in the double digits, forcing him to expend resources addressing the threat.
(In a tweet, Sacks denied having “cynical” reasons for supporting Kennedy and laid out reasons for his support, including his avowed embrace of free speech and ending wars.)
As Axios pointed out, the support of Sacks, Chamath and other tech elites “could help narrow the money gap and keep Kennedy in the race longer than a typical long shot.” It’s a power play, in other words — if, perhaps, an ill-considered one, as DeSantis continues to struggle in the polls.
Kennedy is an advocate of bitcoin — he made his first presidential campaign event at a cryptocurrency conference — so there’s at least something that the tech set can point to as an area of interest that’s plausibly future-forward. (Critics of Kennedy have pointed out the absurdity of a lifelong environmental advocate embracing bitcoin, a tremendous energy drain and contributor to climate change. He has also come out against windmill farms and other vital green infrastructure.)
With crypto in the gutter, however, and the biggest exchanges facing SEC complaints and fraud charges, it’s hardly an ascendant voting bloc, and unlikely to eclipse his odd anti-tech musings on other fronts. Last week, on Joe Rogan’s podcast, Kennedy said that exposure to Wi-Fi opens the “blood-brain barrier” and causes cancer.
Kennedy’s supporters in Big Tech also no doubt admire his bomb-throwing heterodoxy, soething they imagine themselves to possess, too. RFK Jr. is fighting the corporations, Big Pharma, his own complacent political party, the establishment — even if he is the establishment. Which is actually a pretty good encapsulation of modern Silicon Valley mind-set, and probably the arch reason that Kennedy’s campaign is resonating there so thoroughly.
It’s been a long time since Palo Alto could feasibly be called an underdog in any capacity at all, and not the utmost locus of American power and wealth. Not unlike Kennedy himself, Silicon Valley is thoroughly saturated in both, and operates from a position of unimaginable privilege — and so must manufacture obstacles and detractors to maintain the illusion that it is a scrappy force for disruption constantly being held at bay by other powers that be.
This was already an illusion in the Obama era, when Facebook, Google and Tesla glommed onto the candidates’ inspiring message of transcendence — Big Tech was already big, if not as big, and plenty powerful. Kennedy’s rise is occasion to recognize that the ideological alliance between the Valley and liberal politics was always overstated, and always more transactional than aspirational.
The tech set of the late ’00s donated to Obama’s campaign and proffered their social media tools and praise, and Obama rewarded them with subsidies from the 2009 American Recovery and Reinvestment Act and two presidential terms’ worth of kid glove treatment when it came to regulation and antitrust policy. And he was sure to trumpet the innovation on display there, feeding the myth in the process. Musk donated to Obama, sure, but during the same campaign cycle, he donated to the Republican National Committee, too. (Musk snagged a $465-million government loan for Tesla at a crucial juncture and years of cooperation with the administration in return.)
Silicon Valley is like any other powerful industry this way — its lobbyists, public-facing figures and attention-seeking executives try to guess which way the wind is blowing and place their bets accordingly. In 2008, when it behooved the industry to echo the calls for change, hope and progress, that’s where they marshaled their resources. Now, after many of the giants, enjoying the fruits of the Obama years, have ossified into monopolies, scandals and crashes have marred the region’s reputation and new innovations such as crypto haven’t panned out, the industry, as powerful and rich as ever, finds itself on uncertain cultural terrain.
In Kennedy, the Valley’s power players see a familiar face, and see much of themselves — the scrappy fighter to their rebel startup founder, taking on the establishment from the comfortable confines of the same establishment. Albeit with ever darker, ever more reactionary politics.
Business
On TikTok, Users Thumb Their Noses at Looming Ban
Over the last week, the videos started appearing on TikTok from users across the United States.
They all made fun of the same thing: how the app’s ties to China made it a national security threat. Many implied that their TikTok accounts had each been assigned an agent of the Chinese government to spy on them through the app — and that the users would miss their personal spies.
“May we meet again in another life,” one user wrote in a video goodbye set to Whitney Houston’s cover of Dolly Parton’s “I Will Always Love You.” The video included an A.I.-generated image of a Chinese military officer.
The videos were just one way that some of TikTok’s 170 million monthly U.S. users were reacting as they prepared for the app to disappear from the country as soon as Sunday.
The Supreme Court is set to rule on a federal law that required TikTok’s Chinese owner, ByteDance, to sell the app by Jan. 19 or face a ban in the United States. U.S. officials have said China could use TikTok to harvest Americans’ private data and spread covert disinformation. TikTok, which has said a sale is impossible and challenged the law, is now awaiting the Supreme Court’s response.
The possibility that the justices will uphold the law has set off a palpable sense of grief and dark humor across the app. Some users have posted videos suggesting ways to circumvent a ban with technological workarounds. Others have downloaded another Chinese app, Xiaohongshu, also known as “Red Note,” to thumb their noses at the U.S. government’s concerns about TikTok’s ties to China.
The videos highlight the collision taking place online between the law, which Congress passed with wide support last year, and everyday users of TikTok, who are dismayed that the app may soon disappear.
“Much of my TikTok feed now is TikTokers ridiculing the U.S. government, TikTokers thanking their Chinese spy as a form of ridicule,” said Anupam Chander, a professor of law and technology at Georgetown University and an expert on the global regulation of new technologies. “TikTokers recognize that they are not likely to be manipulated by anyone. They are actually quite sophisticated about the information they’re receiving.”
TikTok declined to comment on the users’ references to its ties to China.
Some users are not willing to give up the app — or their supposed spies — so easily.
Hundreds of TikTok videos over the last week have cataloged how teenagers could keep using the app in the United States, according to a review by The New York Times. One of the most popular methods described is the use of a VPN, or a virtual private network, which can mask a user’s location and make it appear that the person is elsewhere.
“They can’t actually ban TikTok in the U.S. because VPNs are not banned,” Sasha Casey, a TikTok user, said in a recent video that was liked over 60,000 times. “Use a VPN. And send a picture to Congress while you do it, because that’s what I’ll be doing.”
While VPNs can make it appear that a phone, a laptop or another electronic device is in a remote location, it is not clear if the technology can circumvent the ban. A device’s real location is stored in many places, including in the app store that was used to download TikTok.
TikTok fans also seem to be behind the sudden surge in popularity for Xiaohongshu, the most downloaded free app on Tuesday and Wednesday in the U.S. Apple Store. Hundreds of millions of people in China use the app, which, like TikTok, features short videos and text-based posts. Xiaohongshu means “little red book” in Mandarin.
Mr. Chander anticipates that the Supreme Court will uphold the ban law this week, though he believes that TikTok has the winning case. He said the downloads of Red Note and the Chinese spy memes showed that many Americans did not agree with their government’s security concerns, particularly at the expense of free speech.
“When the United States shutters a massive free expression service, which our democratic allies have not shuttered, it will make us the censor and put us in the unusual position of silencing expression,” Mr. Chander said. “It will make Americans who use TikTok really distrustful of the U.S. government as carrying their best interests.”
Business
Edison stock turns volatile as growing blame for wildfires lands on the power company
Southern California’s catastrophic fires have rocked the stock of Edison International, the parent company of Southern California Edison, as accusations and lawsuits about the utility’s potential role in starting the fires mount.
Shares of Edison International closed up 5% at $61.30 on Wednesday after plunging 23% this month, making it one of the worst performers on the Standard & Poor’s 500. The rebound came after Ladenburg Thalmann analysts upgraded their rating of the stock to neutral from sell, saying that their target price of $56.50 a share reflected worst-case outcomes associated with the current wildfires.
“At this time, it is too early to discern what the outcomes will be with respect to the impact of the fires on the California Wildfire Insurance Fund solvency and/or the future earnings of Edison International,” the analysts wrote, according to Barron’s. “An initial assessment of SCE’s role in the start of the fires will likely not occur until the summer of 2025 at the earliest.”
State lawmakers established the wildfire fund in the wake of wildfires several years ago after Wall Street investors lost confidence and ratings agencies threatened to downgrade California’s investor-owned utilities.
Market analyst Zacks downgraded Edison International stock from outperform to neutral after the fires started last week. Zacks predicted Edison’s operating revenue would increase during 2025 and 2026, while acknowledging that “the company has been incurring significant wildfire-related costs” and that “higher-than-expected decommissioning costs could materially impact the company’s operating results.”
RBC Capital Markets, another analyst, had a loftier view of Edison as recently as October when it called the utility “a high quality operator, with investor confidence around wildfire risk improving from best in class mitigation efforts.”
The fallout from the fires is an abrupt disruption for a company that had been surging in recent months. In its most recent quarterly report, the company posted a profit of $516 million, or $1.33 per share, compared with $155 million, or 40 cent per share, in the third quarter of last year.
“Our team has achieved remarkable success over the last several years managing unprecedented climate challenges, making our operations more resilient and positioning us strongly for the growth ahead,” President Pedro J. Pizarro said in the report.
Fire agencies are investigating whether downed Southern California Edison utility equipment played a role in igniting the 800-acre Hurst fire near Sylmar, company officials have acknowledged.
The company issued a report Friday saying that a downed conductor was discovered at a tower in the vicinity of the Hurst fire, but that it “does not know whether the damage observed occurred before or after the start of the fire.” The fire is nearly fully contained, according to the California Department of Forestry and Fire Protection.
SCE is also under scrutiny for possibly being involved in sparking the Eaton fire that has burned 14,000 acres and destroyed thousands of structures, wiping out whole swaths of Altadena, where at least 16 people died in the blaze.
On Tuesday the Newport Beach law firm of Bridgford, Gleason & Artinian filed a mass action complaint in Los Angeles Superior Court against SCE regarding the Eaton fire on behalf of victims including Jeremy Gursey, whose Altadena property was destroyed in the fire.
“Based upon our investigation, our discussions with various consultants, the public statements of SCE, and the video evidence of the fire’s origin, we believe that the Eaton Fire was ignited because of SCE’s failure to de-energize its overhead wires which traverse Eaton Canyon—despite a red flag PDS wind warning issued by the national weather service the day before the ignition of the fire,” lawyer Richard Bridgford said in a statement.
The firm said it has represented more than 10,000 California fire victims in past suits against Pacific Gas & Electric Co. and SCE. Bridgford told Yahoo Finance that his inbox is full of Southern California residents seeking to participate in the Eaton fire lawsuit and that he anticipates “there’ll be hundreds joining.”
The most extreme level of a red flag fire warning, a “particularly dangerous situation,” returned to parts of Los Angeles and Ventura counties Wednesday morning, heightening concerns about the potential for new fires.
“The danger has not yet passed,” Los Angeles Fire Department Chief Kristin Crowley said during a news conference Wednesday. “So please prioritize your safety.”
Business
Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns
The government of Albania has given preliminary approval to a plan proposed by Jared Kushner, Donald J. Trump’s son-in-law, to build a $1.4 billion luxury hotel complex on a small abandoned military base off the coast of Albania.
The project is one of several involving Mr. Trump and his extended family that directly involve foreign government entities that will be moving ahead even while Mr. Trump will be in charge of foreign policy related to these same nations.
The approval by Albania’s Strategic Investment Committee — which is led by Prime Minister Edi Rama — gives Mr. Kushner and his business partners the right to move ahead with accelerated negotiations to build the luxury resort on a 111-acre section of the 2.2-square-mile island of Sazan that will be connected by ferry to the mainland.
Mr. Kushner and the Albanian government did not respond Wednesday to requests for comment. But when previously asked about this project, both have said that the evaluation is not being influenced by Mr. Kushner’s ties to Mr. Trump or any effort to try to seek favors from the U.S. government.
“The fact that such a renowned American entrepreneur shows his interest on investing in Albania makes us very proud and happy,” a spokesman for Mr. Rama said last year in a statement to The New York Times when asked about the projects.
Mr. Kushner’s Affinity Partners, a private equity company backed with about $4.6 billion in money mostly from Saudi Arabia and other Middle East sovereign wealth funds, is pursuing the Albania project along with Asher Abehsera, a real-estate executive that Mr. Kushner has previously teamed up with to build projects in Brooklyn, N.Y.
The Albanian government, according to an official document recently posted online, will now work with their American partners to clear the proposed hotel site of any potential buried munitions and to examine any other environmental or legal concerns that need to be resolved before the project can move ahead.
The document, dated Dec. 30, notes that the government “has the right to revoke the decision,” depending on the final project negotiations.
Mr. Kushner’s firm has said the plan is to build a five-star “eco-resort community” on the island by turning a “former military base into a vibrant international destination for hospitality and wellness.”
Ivanka Trump, Mr. Trump’s daughter, has said she is helping with the project as well. “We will execute on it,” she said about the project, during a podcast last year.
This project is just one of two major real-estate deals that Mr. Kushner is pursuing along with Mr. Abehsera that involve foreign governments.
Separately, the partnership received preliminary approval last year to build a luxury hotel complex in Belgrade, Serbia, in the former ministry of defense building, which has sat empty for decades after it was bombed by NATO in 1999 during a war there.
Serbia and Albania have foreign policy matters pending with the United States, as both countries seek continued U.S. support for their long-stalled efforts to join the European Union, and officials in Washington are trying to convince Serbia to tighten ties with the United States, instead of Russia.
Virginia Canter, who served as White House ethics lawyer during the Obama and Clinton administrations and also an ethics adviser to the International Monetary Fund, said even if there was no attempt to gain influence with Mr. Trump, any government deal involving his family creates that impression.
“It all looks like favoritism, like they are providing access to Kushner because they want to be on the good side of Trump,” Ms. Canter said, now with State Democracy Defenders Fund, a group that tracks federal government corruption and ethics issues.
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