Elon Musk isn't the only tech billionaire with the management of federal agencies, overseeing its business. Since Donald Trump took office, more than 30 employees, allies and investors of Musk, Peter Thiel, Marc Andreessen and Palmer Luckey have held positions at federal agencies, helping to sign billion-dollar contracts directly with the company.

Companies owned by Musk, Till, Anderson and Lukey have collected 12 federal contracts since Trump’s inauguration in January, totaling about $6 billion, according to an analysis by the Wall Street Journal. They are actively pursuing billions of dollars.

These appointments raise many red flags in departments that monitor, regulate and grant business to four men's companies. They may violate conflicts of interest laws or government ethics, both of which prohibit federal employees from using public office for private interests.

While it is not uncommon to install trusted allies in government roles, Musk's network has grown at an unprecedented speed and scale. TechCrunch has previously reported on everyone in Musk's universe, who joined him in Doge, where he closed federal agencies and cut the workforce in the departments that regulated their operations. At least 19 others with Silicon Valley connections, both founders and investors, have joined Doge.

"In fact, the second Trump administration is the first time in recent years other ethical guarantees for high-level appointments," Daniel Weiner, director of elections and administration programs at the Brennan Center, told TechCrunch. He noted that Trump fired at least 17 people in the government's ethics office, including directors, immediately after taking office.

"Of course, it does increase the risk of you doing things that do affect, at least indirectly affecting their bottom line," Weiner said. "But this is a long-term problem that our administration is not unique to this administration."

Innovation and Accountability

One might think that it makes sense for employees and colleagues of Musk, Till, Anderson and Luke to join a government agency. Their insiders are talented people, they are behind cutting-edge technology that governments really need, and they understand how to innovate quickly and compete globally.

More serious problems arise when preference threatens to undermine competition, develop or undermine policies that protect market advantages or regulations serving the public interest promote commercial interests.

For example, the Consumer Financial Protection Agency recently retreated from the rules that pursued restricting data brokers, despite growing privacy concerns – a shift that represents companies involved in AI, surveillance and data analytics. Another example is the firing of employees at Doge at the National Highway Traffic Safety Administration, who investigated self-driving car safety, including several investigations into Tesla.

“One of the decisive structural challenges facing the U.S. government at the moment is that we have a system with the richest interests, with a lot of power to shape our elections and then reverse and shape government policies,” Weiner said.

Another Silicon Valley appointer of former Thiel employee Mike Kratsios is now leading the U.S. government's technology policy. In his April speech, he talked about the bad regulations that “dump our innovators, especially those who innovate in AI.”

“Many people in Silicon Valley tend to think that anyone working in Silicon Valley will also work in managing the U.S. government,” Weiner said. “As we see now, a lot of people will be hurt because of their assumptions.”

"The truth is that after the other five people fail, you have a successful startup, and it doesn't necessarily mean you know how to run the Social Security Agency."

Internal network and external returns

All businesses between Musk, Tyre, Anderson and Lukey are related. Musk's SpaceX is backed by Thiel's founder fund and Andreessen's A16Z (also invested in X and XAI). The two VCs also support Luki's defense startup Anduril.

The network of overlapping founders, funders and insiders expanded to several federal agencies. In many cases, these institutions are turning billions of dollars in federal contracts to these companies.

The journal found that people across Washington, Musk’s network, including Tesla, X and SpaceX, are in more than a dozen institutions, from the Office of President and Personnel Management to the Department of Transport and Energy.

SpaceX employees are also in organizations that can provide new businesses to the company. For example, the Wall Street Journal reported that SpaceX senior engineer Theodore Malaska received an ethical waiver in February, allowing him to work temporarily with the Federal Aviation Administration while still working for the Rockets. The FAA has not signed any contract with SpaceX, but Malaska said the agency upgraded Alaska's weather observation system using Starlink on X.

SpaceX is also a major commercial provider for transporting crew and NASA cargo. Despite national security concerns — such as the secret backdoor of the company’s investment in China and the drug habits Musk reported, SpaceX won $5.9 billion in April’s $13.7 billion in the Pentagon mission from the U.S. Space Force in April. DOD, currently a Starlink customer, also plans to buy SpaceX's Starshield Satellites, a military version of the Internet satellite.

According to the Wall Street Journal, Thiel supports the company’s employees to play roles in the State Department, Management and Budget, Health and Public Services, and Social Security Bureau. Thiel's Palantir has received nearly $376 million in rewards since 2020. In 2024, the company also received a grant from the Department of Defense at least $1.2 billion in 2024 and paid off another $100 million in transactions.

Anduril, Palantir and SpaceX recently proposed billions of dollars in Trump's "Golden Dome" missile defense program, which will also add Anduril's existing contract with the U.S. Army. Recently, Anduril and Microsoft took over the 2021 contract worth up to $22 billion to develop AR headsets, according to the Journal.

Michael Obadal, an Anduril executive, was nominated as the number one for the Ministry of Defense. In his moral disclosure, he said he would retain his Anduril stock if appointed.

TechCrunch has been in contact with Anduril, Andreessen Horowitz (A16Z), Palantir and SpaceX.

“This concentration of private wealth and political power is ultimately very risky for our economy,” Weiner said. “Because the government does not make decisions aimed at promoting competition, promoting economic growth, but takes the real risk of government decisions, but is built around protecting specific companies and specific industries from full economic competition.”