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Why some Silicon Valley investors are backing the Trump-Vance campaign

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Why some Silicon Valley investors are backing the Trump-Vance campaign

For many years, Republicans and ardent supporters of former President Trump haven’t been super popular in Silicon Valley circles.

But the sentiment has shifted in recent weeks as conservative voices in San Francisco’s tech sector have grown increasingly strident in their support of a Trump-Vance ticket.

Trump attended a fundraiser last month at venture capitalist David Sacks’ Pacific Heights mansion that raised $12 million and was the former president’s first visit to San Francisco in at least a decade. Sacks said he hoped the event would “break the ice” on discussions around Trump and could create a “preference cascade, where all of a sudden it becomes acceptable to acknowledge the truth.”

And on Tuesday, Sacks posted a list of 17 prominent names in the tech industry — including Tesla Chief Executive Elon Musk, Sequoia Capital partner Doug Leone and Ben Horowitz, general partner of renowned venture capital firm Andreessen Horowitz — with a photo of Trump giving a thumbs-up on social media platform X, formerly Twitter. “Come on in, the water’s warm,” Sacks wrote.

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Many of those tech investors celebrated the appointment of Ohio Sen. J.D. Vance — a venture capitalist who built his career in Silicon Valley — as Trump’s vice presidential nominee out of a shared belief that he would help remove regulations they believe could stifle innovation in artificial intelligence and cryptocurrency.

“The future of our business, the future of new technology and the future of America is literally at stake,” Horowitz said Tuesday on “The Ben & Marc Show” podcast. “For little tech, we think Donald Trump is actually the right choice, and sorry, Mom, I know you’re gonna be mad at me for this, but we had to do it.”

But Gov. Gavin Newsom said the shift of Silicon Valley toward the right in this presidential election has been “wildly overstated.”

“I don’t think it’s a trend at all. Those pockets have always been there,” Newsom said in an interview Tuesday while touring a Northern California prison. “There’s been that libertarian energy in the valley for decades and decades. And frankly, I don’t see significant deviation.”

Newsom, who built close ties with the tech industry while mayor of San Francisco from 2004 to 2011, said Silicon Valley donors supporting Trump are “looking at their own economic interests and are very transactional in their business practices.”

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Nonethless, while Silicon Valley has long been home to prominent conservatives such as Peter Thiel and Sacks, such enthusiastic embrace for a Trump-Vance administration in San Francisco’s tech community is striking.

The Bay Area is well known nationally for its progressive politics and as the birthplace of prominent Democrats such as the late Sen. Dianne Feinstein, former House Speaker Nancy Pelosi, Newsom and Vice President Kamala Harris. And Bay Area social media companies like Meta (formerly Facebook) have come under fire from some Republican legislators who accuse them of censoring conservative ideas and Trump.

The region is overwhelmingly represented by Democrats in the statehouse and the San Francisco, San Jose, Berkeley and Oakland mayors’ offices. And while big names in Silicon Valley have more recently donated large sums to the Republican Party and Trump’s election campaign, the Bay Area is more typically the favored cash cow of Democrats.

In 2020, 72.6% of Santa Clara County voters backed Joe Biden, and just 25.2% supported Trump.

Biden made a fundraising stop at billionaire environmentalist and former hedge fund manager Tom Steyer’s house in September. Reid Hoffman, co-founder of LinkedIn, is another Democratic mega-donor who has hosted fundraisers for Biden, as has venture capitalist and Tesla investor Steve Westly.

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In May, investor Vinod Khosla, who hosted a Biden Bay Area fundraiser that month, said he’s a huge supporter of the president.

“We have to absolutely at any cost make sure that donkey’s rump Trump doesn’t get elected and destroy democracy,” Khosla said at a Bloomberg event.

But others in the Silicon Valley have soured on Biden for a variety of reasons, including the government suing tech giants like Apple and Google over alleged monopolistic practices.

Some tech investors also believe the continuation of the Biden administration would restrict innovation in emerging technologies, hindering the nation’s ability to compete in the global tech race — and their own financial interests.

They point to what they call unnecessary investigations by the U.S. Securities and Exchange Commission into crypto startups and the challenges crypto businesses face in getting financing from banks.

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“This is a brutal assault to a nascent industry that has never happened before,” Marc Andreessen said on “The Ben & Marc Show” podcast, acknowledging that his firm is one of the largest cryptocurrency investors in the world.

By contrast, the Trump campaign’s platform calls for the end of the “unAmerican Crypto crackdown” and pledges to “defend the right to mine Bitcoin, and ensure every American has the right to self-custody of their Digital Assets, and transact free from Government Surveillance and Control.”

If elected, Trump also said he would repeal Biden’s executive order on artificial intelligence “that hinders AI Innovation, and imposes Radical Leftwing ideas on the development of this technology. In its place, Republicans support AI Development rooted in Free Speech and Human Flourishing,” according to the Republican platform.

Another beef among tech investors: Biden’s capital gains tax proposal, which would tax the value of an individuals’ assets worth $100 million or more. Critics say that would affect startup founders, whose company valuations fluctuate and whose compensation is based on stock options.

“This makes startups completely implausible,” Andreessen said. “Venture capital just ends.”

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A representative for the Biden administration did not immediately return a request for comment.

Trump’s appointment of Vance — who previously worked with Thiel at Mithril Capital — is expected to give his campaign a further boost among tech backers.

Thiel served on Trump’s transition team after he won the presidency in 2016 and backed Vance when he ran for office, pouring $10 million into Vance’s coffers during his 2022 race for Senate in Ohio, federal records show.

Sacks contributed $1 million to a PAC backing Vance and co-hosted a fundraiser in Miami for Vance and eight other Republican Senate candidates. Vance, who lived briefly in San Francisco, has called Sacks “one of his closest confidants” in politics.

“He’s perceived as one of them,” said Olaf Groth, chief executive of the think tank Cambrian Futures and a professional member of the faculty at UC Berkeley’s Haas School of Business. “The people that are endorsing him are a very rare elite at the very top of the food chain of entrepreneurship and venture capital of Silicon Valley.”

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Silicon Valley leaders are beginning to build the war chest of a new political action committee, America PAC, that is backing Trump’s reelection bid. America PAC reported spending $7.7 million on canvassing, text messages and get-out-the-vote operations over the last three months.

The group’s website and social media accounts are focused on voter registration and turnout, featuring a 15-second clip of Trump saying that “absentee voting, early voting and election-day voting are all good options.”

Multiple outlets reported this week that Musk has pledged to give $45 million per month to the group through November. Other Silicon Valley donors to the group include cryptocurrency executives Cameron and Tyler Winklevoss; Joe Lonsdale, co-founder of Palantir Technologies; and Shaun Maguire, a partner at Sequoia Capital, federal filings show.

Republican Party backers say more Bay Area businesses are getting frustrated at how local government is handling crime and other issues in San Francisco.

“These companies are being crippled by Democrat policies,” said Harmeet Dhillon, California’s Republican national committeewoman and a San Francisco-based attorney who acts as an official legal surrogate for the Trump campaign. “They have to make decisions that are the best for them, so that’s the calculus I’ve been seeing.”

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Some Trump supporters, such as Andreessen, had previously supported other Democratic presidential candidates such as Hillary Clinton. Within Biden’s own Democratic Party there are schisms over whether he should be the next president, given concerns about his age.

“They’re voting with their pocketbooks, but by signaling that they’re not in lockstep with Democrat policies and Democrat disarray of our country, they’re signaling to their tens and hundreds of thousands of workers that it’s OK to be Republican,” Dhillon said.

Times researcher Scott Wilson contributed to this report.

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Hollywood crew members ratify new IATSE contract

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Hollywood crew members ratify new IATSE contract

Film and TV crew members have ratified a new three-year contract with the entertainment companies after a relatively smooth bargaining period on the heels of two major Hollywood strikes.

Members of the International Alliance of Theatrical Stage Employees approved the new Hollywood Basic Agreement this week by a ratification vote of 85.9% to 14.1%, with a “historically high” turnout, according to the union.

The basic agreement covers some 50,000 below-the-line workers primarily based in Los Angeles, including cinematographers, costume designers, set decorators, editors and lighting technicians. Union members also ratified the Area Standards Agreement, which covers 20,000 tradespeople working in other production hubs across the United States.

The new contracts will go into effect Aug. 1.

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“IATSE’s rank-and-file members have spoken, and their will is clear,” Matthew D. Loeb, international president of IATSE, said in a statement.

The union cited “significant wage increases in addition to several craft-specific adjustments, bolstered health/pension benefits with new funding mechanisms, improved safety provisions, critical protections preventing misuse of artificial intelligence from displacing IATSE members, and more. The gains secured in these contracts mark a significant step forward for America’s film and TV industry and its workers. This result shows our members agree, and now we must build on what these negotiations achieved.”

The results of the vote were posted nearly a month after IATSE reached a tentative deal with the Alliance of Motion Picture and Television Producers, which negotiates on behalf of studios and streamers such as Disney, Warner Bros. Discovery, Paramount and Netflix.

The 71-page basic agreement contains wage increases, funding for the union’s pension and health plans, streaming residuals, overtime pay and regulations around artificial intelligence.

“The AMPTP member companies congratulate IATSE on ratifying these landmark deals, which received overwhelming support from its members,” the AMPTP said in a statement.

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“From the first day of negotiations, IATSE leadership demonstrated a clear commitment to a fair and collaborative process, which resulted in agreements that contain historic gains and protections, reflect the immense value that IATSE members bring to production, and ensure our industry will continue to deliver well-paid jobs and exciting content for years to come.”

Members of the Hollywood Basic Crafts — a coalition of labor unions advocating for drivers, electricians, location managers, plumbers, mechanics, cement masons and other industry tradespeople — are still in contract talks with the AMPTP. Their agreements expire July 31.

Last week, Hollywood Basic Crafts spokesperson Amy Gorton said the unions and the studios remained “far apart” on key issues heading into their final scheduled round of negotiations.

“We have been extremely clear on the reasonableness of what we have brought to the table. Many of our proposals would cost the employers very little, and in some cases no money, but would be huge wins for our members,” Gorton said in a statement.

“July 19th is the last scheduled day for our negotiations. … We have informed the Studios that while we can look to schedule more dates after the 19th, we will not be extending our agreements past the expiration date of July 31st.”

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From LAX to hospitals to Starbucks, global tech outage brings chaos and frustration

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From LAX to hospitals to Starbucks, global tech outage brings chaos and frustration

Airlines, banks, healthcare systems, government agencies and other industries across California scrambled to recover Friday from the effects of a widespread global technology outage.

Roughly 100 flights had been canceled by midmorning Friday at Los Angeles International Airport, and even more were delayed. Overnight, travelers facing long delays and cancellations were resigned to trying to get some sleep on the airport’s well-trodden carpeted floor. Some used their luggage as pillows.

At some California hospitals, staff said the outage prevented them from accessing patient charts.

Starbucks faced major disruption to its mobile ordering service throughout the day Friday, meaning caffeine seekers had to place their orders in person at stores, resulting in longer-than-typical lines. Some locations closed for the day.

Some government agencies reduced services.

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Travelers at other California airports were facing issues similar to LAX’s.

The chaos stemmed from a faulty update sent by CrowdStrike, a Texas cybersecurity company whose software is widely used, that interfered with the core functions of computers running Microsoft Windows. This caused Microsoft’s infamous “blue screen of death” to pop up and convey a message along the lines of, “Your PC ran into a problem and needs to restart.” The outage was not a security incident or a cyberattack, CrowdStrike said.

The company’s chief executive, George Kurtz, said Friday morning that a fix had been made.

“We understand the gravity of the situation and are deeply sorry for the inconvenience and disruption. We are working with all impacted customers to ensure that systems are back up and they can deliver the services their customers are counting on,” Kurtz wrote on X.

Meanwhile, the defect rippled across technology worldwide. There were reports that some airports were beginning to restart service, but it was unclear when operations would return to normal.

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The California Governor’s Office of Emergency Services wrote on X that officials are “closely monitoring the global software outage.”

“Initial reports indicate minor state system outages,” the office wrote. “However, all 911, public safety communications and critical infrastructure is functioning as expected.”

LAX first started to see glitches late Thursday. The outages were initially limited to Frontier Airlines and a few other carriers and were caused partially by a software issue with Navitaire, a boarding pass printing system. The issue grew as more and more airlines began to face the same problems. Delta, American and United airlines were also affected.

A representative for LAX emphasized that the issues facing the airport did not affect flight safety. When a patch of code that caused the problem was fixed in CrowdStrike, the airport started to see airlines come back online, but it is still facing many more delays and cancellations than usual.

On Friday, LAX had more than 70 cancellations before 7 a.m., compared with 14 all day on Wednesday. An hour later that number had swelled to 100 cancellations and 188 delays. At San Francisco International Airport, the numbers were similar. There were 16 cancellations on Wednesday compared with more than 70 Friday morning.

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More than 8,800 flights were delayed and more than 2,600 had been canceled across the United States, according to data provided by FlightAware.

Los Angeles Mayor Karen Bass was in touch with leadership at Los Angeles World Airports who were “working actively to resolve travel issues,” said Zach Seidl, a spokesperson for the mayor.

“Travelers at LAX and other regional airports should plan ahead for potential delays,” he said.

Frustration among airline employees and passengers was widespread at the airport. Some tried to sleep on a luggage conveyor belt before an airport employee shouted for them to get up.

“It was terrible. It is terrible,” said Elissa Moore, 29. “Cause we’re still going through it.”

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Shortly before 6 a.m., a Delta representative took to the intercom to tell passengers that the airport was still allowing planes to land, but that for the time being, all outbound flights were grounded. He advised travelers who are from L.A. to “go home” and check for updates on the company’s app or website.

He added that the company’s system was completely shut down and that the resulting crippling of flight operations was “worse than 9/11.”

Passengers reported waits of up to two hours to get through security into Terminal 2, as many people whose flights were canceled were instructed to retrieve their baggage before trying to rebook their flight.

Passengers whose flights had been canceled stood sullenly in line to rebook but could not complete that task either because of the outages. One video showed a woman at LAX hugging a Delta employee as she cried.

Outside were dozens of planes on the tarmac with nowhere to go.

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Gabrielle Watson, an L.A. DJ and music producer, arrived at LAX on Thursday night to catch her 11:59 p.m. United Airlines flight to Chicago with a connection to Columbus, Ohio, so she could play a set Friday at the Secret Dreams Festival.

Watson knew there were problems immediately when she got to her gate and saw the blue screens displayed. Still, her flight boarded and she remained on the plane for hours as delays ravaged the airport.

After about three hours, passengers deplaned and Watson went home, realizing she was not going to make her connecting flight in Chicago. Her flight was canceled about five hours after its scheduled departure time.

“There were a lot of upset people,” she said. “They were spread around on floors everywhere trying to be comfortable waiting for information. It was very stressful and a bit dark.”

Some observers have argued the incident demonstrates the risk of having one potential point of failure affecting millions of computers. At the very least the disruption shows the need for better software in crucial systems, some experts say.

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U.S. Transportation Secretary Pete Buttigieg said that although new technology has brought major benefits to efficiency and safety, they also have specific vulnerabilities that must be addressed.

“These are the kinds of disruptions that nobody wants to experience, and we’ll be pressing airlines and the software community on what they’re doing to get ahead of this for the next time,” he said.

The effects of the outage went beyond aviation.

Within the Providence healthcare system, IT teams worked overnight to restore functionality in electronic health records. The healthcare company noted that other clinical applications and workstations were still not up and running as of Friday afternoon.

Cedars-Sinai Medical Center said it was also experiencing fallout from the software outage, though the hospital remained open Friday.

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“We are actively working to address the issue and minimize any impacts,” the hospital said in a statement. “We thank our patients and our staff for their flexibility during this unexpected event.”

The outage even upended people’s coffee fix.

“We continue to welcome and serve customers in the vast majority of our stores and drive-thrus and are doing everything we can to bring all systems online as quickly as possible. We apologize for any inconvenience,” said Jaci Anderson, a spokesperson for Starbucks.

The California Department of Motor Vehicles was forced to scale back services at offices statewide. Online services and kiosks were not affected by the outage, according to the agency.

People in California’s jails were unable to make or receive phone calls because of the outage. The software update affected ViaPath, the communication technology used in jails, according to the California Department of Corrections and Rehabilitation. It is not clear when the system will be up and running.

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“CDCR understands how important it is for incarcerated people to stay connected with their loved ones and is diligently working to resolve this matter,” a spokesperson told The Times.

The Los Angeles County Superior Court system was forced to postpone cases in which litigants were scheduled to appear remotely Friday. The court said in a statement it is “rapidly working to reestablish connectivity.”

A terminal at the Port of Los Angeles and four terminals at the Port of Long Beach were also temporarily affected by the outage overnight. But the ports were operating normally Friday, officials said.

KGO-TV, the ABC affiliate in San Francisco, couldn’t go on air as scheduled for its 11 p.m. newscast. Instead anchors delivered the day’s top headlines via Facebook live.

Times staff writers Joseph Serna, Ruben Vives, Libor Jany, David Zahniser, Jon Healey and Sandra McDonald and the Associated Press contributed to this report.

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Southern California's jobs picture is improving; glimmer of hope seen in Hollywood employment

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Southern California's jobs picture is improving; glimmer of hope seen in Hollywood employment

California’s unemployment rate held steady last month and the overall jobs picture looked considerably brighter than earlier this year, according to new government data released Friday.

Still, at 5.2%, the state’s jobless rate is tied with Nevada for the highest in the country; the national unemployment figure averaged 4.1% last month.

But with 22,500 jobs added over the month, California is on pace with the rest of the nation.

And the number of unemployed people in the state dropped for the third straight month in June, falling below 1 million for the first time this year, according to seasonally adjusted data from the state’s Employment Development Department.

Significantly, some key economic engines, especially in Southern California, saw notable gains or improvement.

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Transportation and warehousing employers statewide added almost 7,000 jobs last month. In doing so, that sector posted the first year-over-year increase in payroll growth since January 2023.

“It’s a good sign for the Inland Empire,” said Manfred Keil, an economics professor at Claremont McKenna College in Claremont, referring to the large number of warehouses and distribution centers that blanket parts of the counties east of Los Angeles.

He noted that the ports of L.A. and Long Beach have been busier this year, in part because of the diversion of cargo to the West Coast from the drought-stricken Panama Canal. That’s provided a lift to the region’s logistics industry, which Keil said has been coming back after a long period of pandemic-related ups and downs. “The adjustment is over,” he said.

Southern California also saw a glimmer of hope in the latest jobs data for the film industry.

Employment in the motion picture and sound recording industries rose by 3,000 jobs last month, to 121,200 statewide. While that number isn’t adjusted for seasonal variations, the data in recent months suggest employment may be improving after sharp declines over much of the last two years amid the industry’s labor strikes, streaming wars and other challenges.

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Overall, California’s job growth in June was led by the combined trade and transportation sector, government and information, which includes jobs in entertainment, according to the EDD.

Healthcare and social assistance, which have long been the strongest job creators in the state and nation, took a bit of a pause in June.

Payrolls at hotels and restaurants, as well as the entire grouping of leisure and hospitality businesses, were flat.

And there were outright losses in the state’s construction and manufacturing industries, which have been cutting jobs for most of the year.

In addition, tech sector employment remains lackluster.

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Statewide, payrolls at computer systems and design firms, for example, were down in June on a year-over-over basis for the 16th straight month. And the recent announcement by Elon Musk that he plans to relocate SpaceX and X to Texas won’t help.

If he follows through with it, Musk’s move would complete “the hollowing out of the once vibrant tech hub in the mid-Market area of San Francisco,” said Michael Bernick, an employment attorney at Duane Morris in San Francisco. “X’s exit completes the exodus started by Uber in 2019, followed by Block (formerly Square) in 2022 and Reddit in 2023,” he said.

For all industries, the number of payroll jobs in California rose 224,000 in June, or 1.3%, from a year ago. That compares with a growth rate of 1.7% for the nation as a whole, according to the U.S. Bureau of Labor Statistics.

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