SpaceX · Tesla · Donald Trump · Elon Musk · Democrats · Republicans · CNBC Technology
Elon Musk’s record election bet backfired. The backlash may reach beyond one billionaire
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Democrats' sweeping midterms victory marked a major rejection of Elon Musk and the artificial-intelligence industry, as a broad backlash against U.S. President Donald Trump and his tech allies put their political influence, and the debt-fueled data center buildout, under sharper scrutiny.
Key facts
- JPMorgan Asset Management estimates the AI infrastructure buildout could cost roughly $5 trillion through 2030, including about $2 trillion financed through investment-grade debt markets
- Musk, who spent a record of at least $474 million on the midterms, funneled $224 million, or nearly half, into Texas alone, according to a CNBC analysis of campaign finance records, only to see
- Nationwide, Musk's America PAC spent nearly $87 million across 44 federal races, according to a CNBC analysis of FEC filings
- America PAC backed eight losing congressional candidates in 2024, and last year Musk spent over $20 million trying to elect a conservative in Wisconsin
Summary
Democrats' sweeping midterms victory marked a major rejection of Elon Musk and the artificial-intelligence industry, as a broad backlash against U.S. President Donald Trump and his tech allies put their political influence, and the debt-fueled data center buildout, under sharper scrutiny. Musk, who spent a record of at least $474 million on the midterms, funneled $224 million, or nearly half, into Texas alone, according to a CNBC analysis of campaign finance records, only to see his favored candidates, Republican Senate nominee Ken Paxton and Gov. The defeats rattled markets overnight, sending SpaceX and Tesla shares lower, both of which have long flourished under Abbott's business-friendly. Across the country, voters pushed back against billionaire influence and the growing power of technology companies, electing critics of the AI industry and approving restrictions on data centers fueling its expansion.