As Elon Musk's Rift With Donald Trump Deepens, Former Google Executive Says MAGA And Tech World Can't Thrive Without Each Other

As Tesla Inc. TSLA CEO Elon Musk continues to slam Donald Trump's "Big Beautiful Bill," the All-In Podcast panelists, including David Friedberg and Chamath Palihapitiya, caution that escalating tensions between MAGA and Silicon Valley could destabilize both political and technological progress.

What Happened: On the July 4 episode of the All-In Podcast, the panel dissected the growing rift between Musk and Trump, sparked by the Tesla CEO’s criticism of the tax and spending package that adds $3.8 trillion to the deficit.

Friedberg, who was one of the early Alphabet Inc. GOOG GOOGL executives, defended Musk's frustration, saying, "We are in a debt-death spiral and they [critics of the bill] are absolutely correct. So I don’t think that Elon is off the reservation when he makes those comments."

He spoke about the importance of government efficiency reforms Musk once pushed through the Department of Government Efficiency (DOGE), noting, "Elon's right with respect to the spending."

Friedberg warned, however, that mutual dependence between MAGA and tech is crucial. "I don't think MAGA can exist successfully without tech alignment. I don't think tech can exist without MAGA."

"I don’t think that these two can exist in isolation and in conflict with one another," he stated.

Chamath Palihapitiya downplayed the feud, suggesting the alliance would hold. "I think the reality is that when push comes to shove, I think that they agree on more things and they probably disagree."

Why It's Important: On Saturday, Musk announced on X, "Today, the America Party is formed to give you back your freedom." The tech mogul also criticized the big beautiful bill's fiscal consequences, arguing that the U.S. had become "a one-party system, not a democracy."

Trump fired back on Truth Social, ridiculing the idea of a Musk-led third party, calling it a "train wreck." The President said that the system isn't built for third parties and they only bring "Disruption & Chaos."

Musk was one of Trump's largest donors for the 2024 campaign and had headed DOGE before stepping down in May.

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