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    Elon Musk, Reid Hoffman and Other Tech Billionaires Brawl Over Politics

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    Elon Musk, Reid Hoffman and other tech billionaires, many of whom are part of the “PayPal Mafia,” are openly brawling with one another over politics as tensions rise.Less than an hour after a gunman in Butler, Pa., tried to assassinate Donald J. Trump this month, David Sacks, a venture capitalist based in San Francisco, directed his anger about the incident toward a former colleague.“The Left normalized this,” Mr. Sacks wrote on X, linking to a post about Reid Hoffman, a technology investor and major Democratic donor. Mr. Sacks implied that Mr. Hoffman, a critic of Mr. Trump who had funded a lawsuit accusing the former president of rape and defamation, had helped cause the shooting.Elon Musk, who leads SpaceX and Tesla and previously worked with Mr. Sacks and Mr. Hoffman, then weighed in on X, name-checking Mr. Hoffman and saying people like him “got their dearest wish.”In Silicon Valley, the spectacle of tech billionaire attacking tech billionaire has suddenly exploded, as pro-Trump executives and their Democratic counterparts have openly turned on each other. The brawling has spilled into public view online, at conferences and on podcasts, as debates about the country’s future have turned into personal broadsides.The animus has pit those who once worked side by side and attended each other’s weddings against one another, fraying friendships and alliances that could shift Silicon Valley’s power centers. The fighting has been particularly acute among the “PayPal Mafia,” a wealthy group of tech executives — including Mr. Hoffman, Mr. Musk, Mr. Sacks and the investor Peter Thiel — who worked together at the online payments company in the 1990s and later founded their own companies or turned into high-profile investors.Other tech leaders have also been pulled into the political spats, including Vinod Khosla, a prominent investor, and Marc Andreessen and Ben Horowitz of the Silicon Valley venture firm Andreessen Horowitz.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      GOP Donors Face Dilemma as DeSantis Drops Out

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      Ron DeSantis’s exit, and Nikki Haley’s struggle to make headway against Donald Trump, are forcing Republicans to make a tough choice.The narrowing race for the Republican presidential nomination is creating tough choices for anti-Trump donors.Sophie Park for The New York TimesIt’s down to Trump and Haley now The effort to pick anyone but Donald Trump as the Republican presidential nominee took another big, if expected, blow on Sunday when Ron DeSantis dropped out of the race and endorsed the former president. (Other former hopefuls, including Vivek Ramaswamy and Tim Scott, have also endorsed Trump.)The Republican faithful are coalescing around Trump in a way that raises questions about the next move by the wealthy donors who have sought to stop him.Nikki Haley is now the only potential roadblock to a Trump nomination. DeSantis came into the race as the most daunting opponent to the former president, but his misstep-laden campaign never turned into a serious threat. Among his strategic errors was betting that “anti-woke” fights, including his battle against Disney, would resonate with voters. (Politico reports that a top DeSantis fund-raiser had proposed a legally untested way for the campaign to remain afloat, but the Florida governor eventually yielded to electoral reality.)Haley has embraced her status as the last anti-Trump candidate standing: “May the best woman win,” she said on Sunday. But polls put her some 15 percentage points behind Trump in New Hampshire, as voters head to the polls tomorrow.It’s a sign that the influence of big-money donors is limited. DeSantis’s war chest was financed largely by deep-pocketed benefactors. And in recent months, Haley has drawn support from a bipartisan group of anti-Trump moguls, including the hedge fund billionaire Stanley Druckenmiller and the Democratic investor and LinkedIn founder Reid Hoffman. (JPMorgan Chase’s Jamie Dimon has publicly exhorted people of all political stripes to back Haley.)But as The Times’s Ken Vogel notes, winning over the moneyed class hasn’t guaranteed electoral success for years. Just ask Jeb Bush.What will those anti-Trump donors do? Some are continuing to back Haley: Several Wall Street titans, including Druckenmiller and Henry Kravis, will host a fund-raiser for her on Jan. 30, a week after the Republican and Democratic New Hampshire primaries. And Americans for Prosperity, a super PAC backed by the Koch business empire, said it would continue to back Haley through at least Super Tuesday in early March.But if Haley loses badly in New Hampshire, how long will business leaders accustomed to success stick with a failing bet? Ken Langone, a co-founder of Home Depot and one of her backers, said recently that he wants to see how she does tomorrow before giving more money.In other election news: The top outside political group backing President Biden raised $208 million last year. And Treasury Secretary Janet Yellen is heading to the Midwest this week to tout Biden’s economic record as data points increasingly turn positive.HERE’S WHAT’S HAPPENING The war in Gaza hits the Middle East’s economy. Three months in, the conflict has cost Egypt, Lebanon and Jordan more than $10 billion in economic losses, and risks pushing 230,000 into poverty. Meanwhile, international support for Israel is fraying as casualties in Gaza mount and as attacks by Houthi rebels on commercial vessels in the Red Sea are driving up shipping costs.Exxon Mobil sues climate investors to stop a proxy fight. The fossil-fuel giant asked a federal court in Texas to throw out a proposal from Follow This and Arjuna Capital that calls for speeding up the company’s efforts to cut greenhouse gases. A decision could clarify S.E.C. guidance on which shareholder proposals can be put up for a vote by company shareholders.Another Boeing model comes under regulatory scrutiny. The F.A.A. said on Sunday that airlines should inspect the door plugs on Boeing 737-900ER planes “as an added layer of safety.” Confidence in Boeing’s engineering and quality control has fallen after hundreds of Boeing 737 Max 9s were grounded in the wake of a door panel tearing off an Alaska Airlines jet in flight.S&P 500 futures are up again on Monday. After hitting a record on Friday, the benchmark index looks set to extend those gains. Last week’s rally was driven by investor bets on interest rates cuts and the artificial intelligence boom buoying tech stocks.Could Macy’s get hostile? Macy’s has rejected a $5.8 billion takeover bid from the investment firms Arkhouse Management and Brigade Capital that valued the struggling department store chain at roughly 20 percent above its closing share price on Friday.The investor group is now threatening to take the offer to shareholders. With a potential hostile bid looming, here are DealBook’s questions about what may come next.How would Arkhouse and Brigade pull off a deal? Macy’s board cited doubts about the investment firms’ financing when it rejected the proposal on Sunday. The company said the firms had proposed to pay 25 percent of the offer in equity. The rest would most likely be from debt such as leveraged loans, the market for which has been tight thanks in part to high interest rates.Could the rejection open the door to other bids? Arkhouse’s 2021 offer for Columbia Property Trust led to another buyer entering the picture. Macy’s has not reached out to prospective buyers, people familiar with the matter tell DealBook. But the retailer indicated in a statement that it would “be open to opportunities that are in the best interests of the company and all of our shareholders.”The list of prospective suitors is short, given the challenges facing the retail sector and the scarring memories of buyouts-gone-bad like with Sears.What is Macy’s turnaround plan? The retailer’s shares have fallen about 30 percent over the past five years, as the company lost significant market share, forcing it to close stores and lay off staff — including an announcement last week that it would cut 2,350 jobs.All eyes are on Tony Spring, who takes over as C.E.O. next month after having led Bloomingdale’s, Macy’s much-healthier higher-end brand. But duplicating that kind of success could be challenging, given Macy’s large and underperforming store base and its different shopper demographics.Taking the temperature of tech C.E.O.s Tech sector C.E.O.s are more optimistic about the economy this year, especially the potential for artificial intelligence and the I.P.O. market. But they also remain wary that geopolitical tensions could disrupt trade and increase headwinds in the capital markets, SoftBank’s latest annual survey of its portfolio companies shows.DealBook got an exclusive first look at the report, which includes start-ups backed bySoftBank’s two Vision Funds and its Latin America fund.Hope is returning after a dismal two years. Almost half of the C.E.O.s surveyed were more upbeat about the economy than they were a year ago and expected to raise capital this year.The improvement in sentiment is from a low base, cautioned Alex Clavel, co-C.E.O. of SoftBank Investment Advisers, which manages the funds. Last year was a hangover from 2022, when the fund-raising “faucets were turned off,” he said. Hopes didn’t pan out that I.P.O.s at the end of 2023 — including of the SoftBank-backed Arm — would lead to a flow of new listings, but 37 percent of C.E.O.s said public listings would pick up in the second half of 2024.A.I. excitement is high, even if it’s unclear how it will be deployed. “There is an increasing sense that 2024 is the year when we go from A.I. enthusiasm to A.I. impact,” Clavel said. A third of the C.E.O.s said they had increased A.I. investment by 50 percent last year and were using it to make products more cheaply or to improve efficiency.But some are proceeding cautiously. Clavel said one company has used A.I. to cut costs significantly but is holding off on more changes “because it’s going to be too unsettling” for the work force.The C.E.O.s said tensions with China were the top geopolitical risk. Still, that obstacle hasn’t significantly affected their businesses yet. The biggest concern for 2024: that wider instability, including war in the Middle East, could sap investor interest in I.P.O.s or raise energy costs in Europe.“I have lost confidence in the determination and ability of the Harvard Corporation and Harvard leadership to maintain Harvard as a place where Jews and Israelis can flourish.” — Larry Summers, the former Treasury secretary and ex-president of Harvard, after the university announced a new antisemitism task force on Friday. The committee is set to be co-chaired by Derek Penslar, a professor of Jewish history who Summers said was “unsuited” for the role in part because of his position on the extent of the school’s antisemitism problem.The week ahead On the agenda this week: earnings, inflation and central bank decisions.Tomorrow: Netflix, Procter & Gamble, Johnson & Johnson and Lockheed Martin release quarterly results. Also, the Bank of Japan is expected to maintain its ultra-loose monetary policy; the markets predict the country will exit its negative rates regime as soon as March.Elsewhere, the Academy Awards nominees are set to be announced.Wednesday: The Dutch chips-equipment manufacturer ASML, Tesla and AT&T report earnings.Thursday: It’s decision day for the European Central Bank, which is expected to hold steady on interest rates. On the other side of the Atlantic, U.S. fourth-quarter G.D.P. is set to be published.In earnings, LVMH, Intel, Visa and a slew of airlines including American, Southwest and Alaska Air Group are due to report.Friday: The Personal Consumption Expenditures report, the Fed’s preferred inflation gauge, will be released.THE SPEED READ DealsSony ended a $10 billion deal to combine its Indian assets with Zee Entertainment, a Mumbai-based media company. (Reuters)Macquarie, the big Australian investment firm, has raised 8 billion euros ($8.7 billion) for its latest European infrastructure fund. (FT)What Citigroup’s exit from the $4 trillion market for municipal bonds, a field it once dominated, means for the business of financing state and local governments. (WSJ)Artificial intelligenceEleven Labs, an A.I voice-cloning start-up, raised $80 million in new funds from investors led by Andreessen Horowitz at a valuation of more than $1 billion. (Bloomberg)How Japan is turning to avatars, robots and A.I. to tackle its labor crisis. (FT)Best of the rest“‘America is Under Attack’: Inside the Anti-D.E.I. Crusade” (NYT)American clothing makers are pushing to change a trade rule that effectively lets foreign manufacturers ship directly to U.S. consumers without paying tariffs. (NYT)The Chinese electric carmaker BYD is going upmarket with a Lamborghini-style E.V. to step up its fight with Tesla. (WSJ)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Trump Targets Nikki Haley in Sharpest Attacks Yet

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      Former President Donald J. Trump on Friday opened one of his most targeted lines of attack yet against Nikki Haley, the former governor of South Carolina who has emerged as one of his top competitors for the Republican nomination, accusing her of being “in the pocket” of “establishment donors.”At a campaign rally in Sioux Center, Iowa, Mr. Trump denounced Ms. Haley as the choice of corporate elites and the political establishment. Ms. Haley has received significant financial support from wealthy donors on Wall Street and in the tech world, including the billionaire co-founder of LinkedIn, Reid Hoffman, who is a major Democratic donor.“Nikki Haley’s campaign is being funded by Biden donors,” Mr. Trump said to hundreds of attendees at an event space about 20 miles from the South Dakota border, referring to Ms. Haley as a “globalist.”“She likes the globe. I like America first,” Mr. Trump said, adding that the “establishment losers and sellouts lagging far behind us in the Republican primary can’t be trusted on taxes or trade or anything else. They’re globalists, and they always will be.”Mr. Trump also cited Ms. Haley’s recent missteps on the campaign trail, in particular her response last week to a question in New Hampshire about the causes of the Civil War. Ms. Haley did not mention slavery in her answer.“She does not have what it takes,” Mr. Trump said.A spokeswoman for the Haley campaign, Nachama Soloveichik, said, “If Trump feels so strongly about his false attacks, he should stop hiding and defend them on the debate stage in Des Moines.” She added that Mr. Trump “probably doesn’t remember that Nikki Haley passed one of the toughest anti-illegal immigration laws in the country in 2011, because he was still a New York City liberal.”Mr. Trump’s increased scrutiny of Ms. Haley reflects her improved standing in the race over the past few months. For most of last year, his fiercest criticism was reserved for Mr. DeSantis, but Ms. Haley has risen in polling throughout the fall and winter. Mr. Trump continues to lead both candidates by wide margins in state and national polls.Mr. Trump argued that his “Make America Great Again” movement had rescued the Republican Party from an elite political class intent on regaining influence by keeping him out of office.“There’s no chance we’re going to let them claw their way back to power,” Mr. Trump said. More

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      Nikki Haley, in Retreat, Says ‘Of Course the Civil War Was About Slavery’

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      A day after giving a stumbling answer about the conflict’s origin that did not mention slavery, Ms. Haley told an interviewer: “Yes, I know it was about slavery. I am from the South.”Nikki Haley, the former South Carolina governor and Republican presidential hopeful, on Thursday walked back her stumbling answer about the cause of the Civil War, telling a New Hampshire interviewer, “Of course the Civil War was about slavery.”Her retreat came about 12 hours after a town-hall meeting in New Hampshire, a state that is central to her presidential hopes, where she was asked what caused the Civil War. She stumbled through an answer about government overreach and “the freedoms of what people could and couldn’t do,” after jokingly telling the questioner he had posed a tough one. He then noted she never uttered the word “slavery.”“What do you want me to say about slavery?” Ms. Haley replied. “Next question.”Speaking on a New Hampshire radio show on Thursday morning, Ms. Haley, who famously removed the Confederate battle flag from the grounds of the South Carolina Capitol in Columbia, said: “Yes I know it was about slavery. I am from the South.”But she also insinuated that the question had come not from a Republican voter but from a political detractor, accusing President Biden and Democrats of “sending plants” to her town-hall events.“Why are they hitting me? See this for what it is,” she said, adding, “They want to run against Trump.”In recent polls, Ms. Haley has surged into second place in New Hampshire, edging closer to striking distance of former President Donald J. Trump. To win the Granite State contest on Jan. 23, the first primary election of 2024, she will most likely need independent voters — and possibly Democrats who registered as independents. That is how Senator John McCain of Arizona upset George W. Bush in the state’s 2000 primary.But the Civil War gaffe may have put a crimp in that strategy.“I think the cause of the Civil War was basically how government was going to run,” she said Wednesday night, “the freedoms and what people could and couldn’t do.”The answer echoed a century’s argument from segregationists that the Civil War was fundamentally about states’ rights and economics, not about ending slavery.Late Wednesday night, even Mr. Biden rebuked the answer: “It was about slavery,” he wrote on social media.She tried to walk back her comments on Thursday, asking: “What’s the lesson in all this? That freedom matters. And individual rights and liberties matter for all people. That’s the blessing of America. That was a stain on America when we had slavery. But what we want is never relive it. Never let anyone take those freedoms away again.”The episode also undermined her appeal to moderates and independents seeking to thwart Mr. Trump’s return to the White House by portraying Ms. Haley as an agent of compromise.Her record as governor of South Carolina included blocking a bill to stop transgender youths from using bathrooms that corresponded to their gender identity. Her push to lower the Confederate battle flag came after the mass shooting of Black worshipers at a Charleston church by a white supremacist. And she has recently called for a middle ground on abortion.“Haley’s refusal to talk honestly about slavery or race in America is a sad betrayal of her own story,” said Representative Ro Khanna, Democrat of California. More

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      Top Democratic Donor Gave $250,000 to a Nikki Haley Super PAC

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      Mr. Hoffman, the co-founder of LinkedIn, has funded an array of anti-Trump candidates and causes.When Jamie Dimon, the chief executive of JPMorgan Chase, urged Democratic donors last week to rally behind Nikki Haley to provide Republican voters an alternative to former President Donald J. Trump, it seemed a far-fetched plea.But at least one of the Democratic Party’s biggest financiers has already done exactly that.Reid Hoffman, the billionaire co-founder of LinkedIn and a major Democratic donor, recently gave $250,000 to a super PAC supporting Ms. Haley, the former South Carolina governor who has gained momentum in recent weeks in the 2024 Republican primary race. The donation, which has not been previously reported, was confirmed by Dmitri Mehlhorn, a political adviser to Mr. Hoffman.The pro-Haley super PAC, SFA Fund Inc., was asked specifically by Mr. Hoffman’s political team if it would take money from Mr. Hoffman, given that he is a Democrat who actively supports President Biden, Mr. Mehlhorn said. The super PAC, he added, said yes.The pro-Haley super PAC did not immediately respond to a request for comment.SFA Fund Inc. has been one of the biggest players in the 2024 Republican primary race, spending more than $33 million on advertising and other expenses. Its biggest contributors in the first half of the year were Jan Koum, a co-founder of WhatsApp, who gave $5 million, and the venture capitalist Tim Draper, who gave $1.25 million. Mr. Koum has since given an additional $5 million, which Puck News first reported.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More