Technology

US corporations push into Musk's orbit – Influence on Trump administration grows

U.S. corporations are strengthening their ties to Musk as he continues to expand his influence in the Trump administration.

Eulerpool News Feb 4, 2025, 2:00 AM

America's largest companies are strengthening their ties with Elon Musk, as the Tesla and SpaceX chief expands his influence within the Trump administration. From Boeing to Amazon, corporations are securing new deals with Musk's companies or emphasizing their existing connections, while he radically restructures the US administration.

In recent days, several collaborations have been announced: Visa concluded an agreement for payment processing with Musk's social media platform X, while United Airlines accelerated its plans to use Musk's Starlink satellites for inflight Wi-Fi. Amazon also significantly increased its advertising spending on X after years of boycotting due to the spread of hate speech. According to SensorTower data, Amazon's advertising budget on the platform increased tenfold in January compared to the previous month.

Apple adapts too: The company updated its iPhone operating system to allow T-Mobile users in the USA to access Starlink satellites. Boeing CEO Kelly Ortberg stated he is working with Musk to accelerate the long-overdue and over-budget delivery of the two new Air Force One aircraft.

Additionally, Oracle and Intel announced collaborations with X and Starlink.

At the same time, part of the $3 billion debt from Musk's takeover of X, held by banks like Morgan Stanley for two years, moved for the first time. Investors, including Apollo, are showing interest in a tranche, favored by the recent $50 billion valuation of Musk's AI start-up xAI, in which X holds a 25 percent stake.

After Trump's election victory in November, companies also reorganized their relationships with Musk on a legal level. JPMorgan Chase dropped a billion-dollar lawsuit against Tesla, which revolved around alleged breaches of contract. Shortly thereafter, bank CEO Jamie Dimon referred to Musk as "a sort of Einstein" and assured that JPMorgan wanted to "support him and his companies as best as possible.

Musk's influence on the Trump administration goes far beyond business deals. Since the election, he has been regularly seen at Trump's side and plays a key role in the appointment of cabinet positions as well as in economic and defense policy. Additionally, he leads the newly created Department of Government Efficiency, which is tasked with dismissing up to two million officials and fundamentally reorganizing the US administration.

Political observers see a clear motivation behind the corporate approaches. "There are likely political advantages for companies to accelerate their relationships with Musk, given his role in the new government," said Jonathan Bundy, a professor of management at Arizona State University. At the same time, withdrawing from existing agreements could lead to sanctions – a danger highlighted by a Washington lobbyist based on Musk's harsh criticism of OpenAI.

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