Business leaders react as a 'blunami' sweeps America
Brad Gerstner and Reid Hoffman are two of Silicon Valley's most prominent elite investors, hedge fund managers, and venture capitalists. Bloomberg and JP Yim/Getty Images Business and tech leaders across the US are reacting after the Democrats took full control of Congress. LinkedIn cofounder Reid Hoffman, Brad Gerstner, and Elon Musk are among those reacting to the blue wave. Data centers and California's ballot measure targeting billionaires are in the spotlight. The 2026 midterm elections delivered shocking wins for Democrats on Tuesday evening, reshaping the balance of power in Washington. Business leaders, tech executives, and investors are now assessing what the new political landscape could mean for their industries as Democratic candidates flipped key Senate and House seats. This includes Texas, where James Talarico won his Senate race despite over $150 million in funding from Elon Musk for his Republican rival, Ken Paxton. After the results, some of the tech and business leaders who sought closer ties with President Donald Trump ahead of his return to the White House could face new congressional scrutiny. In California, the results of the nation's first-ever ballot measure to impose a one-time 5% wealth tax on residents with net worth exceeding $1 billion could have major implications for the state's elite, though as of around 12:30 p.m. ET on Thursday, the "No" vote held a strong lead. Here's how powerbrokers in business and tech reacted to the midterms results amid the blue wave sweeping across the country: Reid Hoffman, LinkedIn cofounder Reid Hoffman is a Democratic megadonor. JP Yim/Getty Images for Clinton Global Initiative Reid Hoffman , the cofounder of LinkedIn and a Democratic megadonor, reacted to the party's big wins in a post on X Tuesday evening. "Voters made clear they demand a different kind of country. Americans want an economy that can compete globally and deliver for them at home. And they made clear that they want leaders they can trust to fight for their constituents," he wrote. "This night blew the doors off our expectations. From Texas to Ohio, Kentucky to Iowa, and South Carolina to Indiana, voters rejected the status quo. Tonight's lesson: Never discount any voter in any place," he continued. Hoffman has been active in politics and vocal about his support for Democrats, spending tens of millions this election cycle. He also spent millions to support Kamala Harris's campaign in 2024. Hoffman has previously said the Democratic Party had alienated Silicon Valley and was partly to blame for its shift to the right. Elon Musk, SpaceX and Tesla CEO SpaceX CEO Elon Musk Mark Schiefelbein/AP Elon Musk , who spent hundreds of millions to support Republicans, broke his silence late on election night with two short X posts. "Data centers in space looking pretty appealing right now," Musk said, referencing concerns that Democratic wins could mean more scrutiny on data center development. "Guess my election-interfering space lasers didn't work this time," he joked in a quick follow-up post. Musk, the world's richest person, spent more money than any other individual in the midterms, donating a whopping $446 million, mostly in Texas, the state he calls home along with his companies Tesla and SpaceX. In addition to Talarico's Senate seat, the Texas governorship was also won by a Democrat, Gina Hinojosa. It was the first time in decades a Democrat won a statewide race in the Lone Star state. Lisa Su, AMD CEO Lisa Su. Win McNamee/Getty Images Lisa Su, the CEO of chipmaker AMD, saw the election results as showing that tech companies need to do more to convince people about the benefits of AI. "At the end of the day, what we need to do is ensure that everybody wins from AI," she said in an interview on CNBC's "Squawk on the Street." "I do think this is an opportunity for us as a tech industry to realize that we need to make sure that the value proposition is clear to every local community that is going to host a data center, and I believe we can do that," she added. Mark Cuban, billionaire former "Shark Tank" investor Mark Cuban, co-founder of Cost Plus Drugs. Bloomberg/Getty Images Mark Cuban did not share a direct reaction to the election results. As Congress flipped to Democratic control, however, the billionaire former "Shark Tank" investor weighed in on universal healthcare, writing in a Wednesday post on X that he was "all for it." Cuban, the founder of pharmaceutical company Cost Plus Drugs, wrote, "We need to figure out a non partisan manner of running our American version of Universal Care." He also referenced Michigan Senator-elect Abdul El-Sayed's book, "Medicare for All." Dara Khosrowshahi, Uber CEO Dara Khosrowshahi at Uber's America250 celebration in July. Jemal Countess/Getty Images for Uber Dara Khosrowshahi , the CEO of Uber, shared his thoughts on the midterms in a Wednesday morning interview with CNBC. "I think the people of our country sent a message regarding change," he said. "I think that continuous inflation really has taken a mark on the consumer." "I think it's up to businesses and up to our politicians and leaders in Washington to respond, and I hope that they do, because it was a very clear message that was sent out." Khorowshahi, who is Iranian by birth, was a vocal critic of Trump during his first term, but donated $1 million to the president's inaugural fund after the 2024 election. Keith Rabois, Khosla Ventures managing director Keith Rabois. Al Drago/Bloomberg via Getty Images Keith Rabois held executive roles at PayPal, LinkedIn, and Square, before becoming managing director at Khosla Ventures. As the results came in overnight, he posted on X: "Another reason to move to Miami." It came shortly after the Associated Press called Florida's US Senate race for the Republican incumbent, Ashley Moody, who held on despite a strong Democratic swing. While two of the city's three main congressional districts elected Democrats in huge swings, the one that covers downtown Miami looks set to narrowly reelect the Republican incumbent, with 99% of the vote counted. Rabois is married to Jacob Helberg, Trump's undersecretary of state for economic affairs, and their wedding ceremony was officiated by Sam Altman. Last year, The Wall Street Journal reported the couple was selling their Miami Beach home for $65 million as Helberg relocated to Washington, DC, although Rabois planned to stay based in Miami. Brad Gerstner, Altimeter Capital CEO Brad Gerstner Bloomberg/Getty Images Brad Gerstner , CEO of Altimeter Capital, had thoughts on how the US data center buildout would be affected by the elections. In a guest appearance on the All-In podcast livestream Tuesday evening, Gerstner said fears that a "blue tsunami" could make it difficult to build new data centers are "overblown." But he said that election results could slow down the development of the centers, and candidates like Gina Hinojosa, the Democrat who won the Texas gubernatorial race Tuesday, could "issue a moratorium on new data centers." He said this could be "really challenging for the AI infratrade." Gerstner also said that Republicans and the AI community have "struggled with the messaging" over AI as the affordability crisis has weighed on Americans' minds. The investor is the architect of "Trump Accounts," the investment vehicle for children in the country that launched in July. Dylan Patel, CEO of SemiAnalysis Dylan Patel, founder of SemiAnalysis, speaks during the Raise summit in Paris, France, on Tuesday, July 8, 2025. The annual conference gathers global leaders and key speakers in tech and AI. Photographer: Nathan Laine/Bloomberg via Getty Images Nathan Laine/Bloomberg via Getty Images Dylan Patel, CEO of SemiAnalysis, hinted at what he believes a blue wave could mean for the AI buildout . "I am now bullish space datacenters," Patel said in a post on X alongside a screenshot of results out of Texas that showed Hinojosa with an early lead over incumbent Republican Gov. Greg Abbott. Ahead of the midterms, some in tech expressed concern that Democratic wins would mean additional scrutiny on data centers, which have faced fierce opposition in communities across the US. Dan Ives, senior managing director at Yorkville Ives Dan Ives. Astrida Valigorsky/Getty Images Dan Ives , a veteran Wall Street analyst and AI bull, said the midterms will put the brakes on the rapid construction of data centers. In a post on X, he said the "Democratic blue tidal wave across the Senate and House was a seismic shift that will have a negative impact on the pace of the AI Revolution buildout in the US over the next few years." Ives added that while some investors will prefer a slower pace, others will view it as added risk. "We estimate 10% of data centers will not happen now," he said. Richard Branson, founder of the Virgin Group Richard Branson. Fabiola Ferrero/Bloomberg via Getty Images Richard Branson, the billionaire founder of the Virgin Group, wrote in a post on LinkedIn that the results of the midterm election are not just "a decisive repudiation of Trump" but also an encouraging sign "about the limits of money in politics." Branson wrote, "As a successful entrepreneur, I have felt embarrassed by the billions that tech entrepreneurs and hedge fund managers have spent on — mostly Republican — campaigns this election cycle, in an attempt to buy influence and control over public policy." Branson added that voters looked past the "hateful and false messages" fueled by the billions spent on funding candidates, voting based on the issues that mattered to them. "I hope this will prompt the next Congress to start a fresh conversation about the toxic impact of money in politics and the need for meaningful campaign finance reform," he wrote. Patrick Collison, Stripe CEO Patrick Collison, cofounder and CEO of Stripe. Win McNamee/Getty Images Patrick Collison , the CEO of Stripe, said the results were a good sign for American democracy. "It seems to me that democracy has on the whole worked very well in America over the last decade, and perhaps better than in any other major country in the West," Collison wrote on X Wednesday. "National outcomes have repeatedly been responsive to underlying voter preferences on meaningful questions, and significant changes in policy have ensued." He also said he'd been reading "Democracy in America" by Alexis de Tocqueville and that "it's striking how much it still rhymes nearly two centuries later." Collison, an Irish citizen who lives in California, was among the tech leaders spending big to oppose the proposed billionaire tax in California. Jason Calacanis, angel investor and "All-In" podcast host Jason Calacanis said that the ban was "smart" because of the risk of terrorism. Bloomberg/Getty Images "All-In" podcast host Jason Calacanis reposted an MSNOW interview clip of Texas senator-elect James Talarico discussing his plans to crack down on data-center companies he said were taking advantage of Texas communities. Talarico said data centers should "pay for their own energy" rather than drive up Texans' utility bills, recycle their water, and get the consent of people living in affected communities before construction begins. "Completely reasonable and exactly what the data center industry is doing," Calacanis wrote on X. Calacanis, who lives in Texas, added that he was "extremely bullish for Texas and SI" if Talarico was being forthright. He said that, if communities were "lucky enough" to have a data center built in their town, they should "extract as much money from them for your local schools and playgrounds." Lane Kasselman, Blockchain.com Co-CEO Lane Kasselman, the Co-CEO of cryptocurrency company Blockchain.com, shared an optimistic reaction to the Texas election results on X. Kasselman wrote that he spent the early part of his career working in Democratic politics in California and now leads a company based in Dallas. He said people across the political spectrum have more in common than they might think. "Whether you're from my home state or my adopted state, most Californians and Texans aren't that different: we love our kids, like clean air, want prices to come down and think Mexican food is awesome," he wrote. "I'm proud to see pragmatism win in Texas." Kasselman added that he saw real opportunity for crypto in the country now, with "the most pro-crypto Congress in history." Aaron Levie, CEO of Box Kimberly White/Getty Images for TechCrunch Box CEO Aaron Levie said the long-term trend is "clearly only going in one direction," even if the election results may complicate the immediate future. "Obviously, you know, it's going to be quite volatile, but it's unquestionable that there's a long-term trend toward being able to power intelligence across organizations and enterprises," Levie said of the near-term market on CNBC on Thursday morning. Levie said the election results may add some questions "around where we build data centers." Read the original article on Business Insider