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Reid Hoffman, the co-founder of LinkedIn and Inflection AI, expressed his views on the forthcoming Trump administration in a recent opinion piece for the Financial Times.
While he holds a cautious optimism that President-Elect Donald Trump may promote increased competition and accelerate innovation within the tech sector, Hoffman raised alarms about the potential for favouritism towards certain individuals and companies, which could ultimately undermine American innovation.
Among those who may benefit from Trump’s presidency is Elon Musk, the CEO of Tesla and SpaceX, as well as the owner of xAI, The Boring Company, and Neuralink. Musk is set to co-lead an advisory commission called the Department of Government Efficiency (DOGE) alongside Vivek Ramaswamy. Hoffman specifically pointed out Musk’s stake in xAI as a “conflict of interest.”
“Using his position to favour xAI in any way, such as awarding it government contracts, encouraging federal agencies to unfairly target AI companies, or imposing new regulations that limit exports will come at the expense of U.S. technological, economic and cultural security, and competitiveness,” Hoffman stated.
Hoffman also noted that Tesla, SpaceX, and Neuralink operate in highly regulated fields, which could be influenced by Musk’s role at DOGE, potentially leading to layoffs or other repercussions within these sectors.
As a supporter of Vice President Kamala Harris and a critic of Trump’s previous administration, Hoffman elaborated on the implications of Trump’s stance on cryptocurrency. He suggested that “ending arbitrary enforcement policies against the cryptocurrency industry” under Biden could lead to a “more stable environment for blockchain innovation.” However, he questioned whether Trump would leverage his regulatory power over crypto to favour select currencies.
Trump has his own cryptocurrency initiative, World Liberty Financial, which launched a native token in October and is reportedly developing a stablecoin intended to replace the U.S. dollar. Additionally, there are reports that Trump Media, his social media venture, is in negotiations to acquire Bakkt, a cryptocurrency trading platform.
Hoffman’s apprehensions regarding Trump’s potential bias are supported by historical context; during Trump’s first term, he “targeted a number of iconic U.S. companies for personal and political reasons, creating constant chaos and uncertainty.”
For instance, Trump frequently criticised Amazon and its CEO Jeff Bezos for perceived unfair advantages related to USPS rates, which resulted in scrutiny of Amazon’s business practices. Interestingly, Bezos has since shown a willingness to engage with Trump after previously withholding endorsement for Harris.
Musk is also known for his public confrontations with competitors and critics. His acquisition of Twitter (now X) was marked by numerous public critiques towards its management and operational strategies.
Hoffman—who previously contributed to E. Jean Carroll’s legal battle against Trump—described him as a “convicted felon and pathological liar,” voicing concerns about possible retribution against himself and others in business from the president-elect. Despite these reservations, he concluded his piece on an optimistic note.
“I very much hope that Trump succeeds wildly in enabling US entrepreneurship and innovation, increasing wages for workers and creating a country where every American is free to pursue their ambitions with dignity, purpose and a sense of belonging,” Hoffman wrote. “That’s why I will continue to do everything I can to build the next generation of companies that bring life-changing opportunities for individuals and society.”