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Elon Musk Holds Town Hall With Pennsylvania Voters in Lancaster
(Samuel Corum/Getty Images)
MUSK.GOV

Elon Musk: Government support for me, but not for thee

Musk’s businesses have all benefited greatly from government loans and subsidies.

Jon Keegan

As Tesla CEO Elon Musk’s DOGE team gains access to US government agencies’ computer systems to root out suspected waste and fraud, Musk and his supporters appear to be SHOCKED to find that the government pays money to businesses for things like subscriptions to news publications.

President Trump posted on Truth Social today that finding $8 million worth of government subscriptions to the widely read Politico Pro newsletter could be “THE BIGGEST SCANDAL OF THEM ALL.”

Musk has been updating his followers on X with examples of government spending he finds outrageous, including government support of National Public Radio.

The nature of the government financial support that NPR receives is a little complicated, as federal law mandates the Corporation for Public Broadcasting to distribute funds to local public TV and radio stations, which in turn choose to pay NPR to license programming like “Morning Edition” and “All Things Considered.”

NPR’s website says that “on average, less than 1% of NPRs annual operating budget comes in the form of grants from CPB and federal agencies and departments.”

Basically, a federal law passed by Congress in 1976 created public funding infrastructure to serve the public good, and a portion of those funds flow to NPR, which is largely supported by corporate sponsorships, programming fees, and listener donations.

Musk.gov

But much of Musk’s vast business empire might not exist were it not for significant taxpayer support in the form of loans and subsidies.

Tesla

  • In 2010, the Obama administration agreed to loan pre-IPO Tesla $465 million through the US Department of Energy to expand its business and support a domestic EV industry. Tesla paid the loan back in 2013, a year early (resulting in a penalty).

  • Tesla received $64 million in state and local tax incentives for its Texas Gigafactory.

  • Tesla has received over $41.9 million in federal contracts since 2008.

  • Tesla has benefited from state government incentives related to its factories, such as Nevada’s $1.3 billion incentives for its sprawling Nevada Gigafactory — including another $330 million to expand the facility.

Yet Musk is calling for an end to the $7,500 EV tax credit that his company benefits from, tweeting, “Take away the subsidies. It will only help Tesla.”

SpaceX

Musk’s SpaceX counts the US government as a key customer for launching satellites and sending astronauts and supplies to the International Space Station.

  • SpaceX has received over $18.5 billion in revenue from the Department of Defense and NASA.

  • SpaceX’s Starlink has government contracts for supplying space-based internet to Ukrainian troops through the DOD.

  • Starlink also had contracts with USAID, the current target of Musk’s cost-cutting campaign.

Musk’s business entanglements with government agencies are now under increased scrutiny as lawmakers scramble to understand what exactly Musk’s team of teenage staffers are doing with newly granted access to several government agencies.

Yesterday, in his capacity as ranking member of the Senate Permanent Subcommittee on Investigations, Senator Richard Blumenthal sent letters to six of Musk’s companies (Tesla, SpaceX, X, xAI, The Boring Company, and Neuralink) demanding information surrounding possible conflicts of interests arising from Musk’s DOGE activities.

Blumenthal wrote:

“Mr. Musk’s dual roles — running a for-profit corporation while serving in public office — not only create glaring conflicts of interest that pose grave risks for America’s most sacred institutions, but may also violate federal law… PSI is conducting a preliminary inquiry into DOGE and the ramifications of its conduct. ”

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Anthropic sues the US government

In response to the Pentagon’s unprecedented, punitive determination that Anthropic is a national security supply chain risk, the AI startup has sued the US government.

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OpenAI is reportedly working with Pentagon to hash out guardrails amid Anthropic standoff over AI safety

OpenAI CEO Sam Altman said the company is working with the Pentagon to negotiate safety guardrails for AI models used in the battlefield, which comes as one of its top competitors, Anthropic, is at a standoff with the government.

According to a memo obtained by several media outlets, Altman told staff OpenAI believes “that AI should not be used for mass surveillance or autonomous lethal weapons, and that humans should remain in the loop for high-stakes automated decisions. These are our main red lines.”

Anthropic, the company behind the AI chatbot Claude, was one of several firms that received a $200 million contract from the Department of Defense for “agentic workflows.”

Since then, tensions between Anthropic and the Pentagon have reportedly risen as the startup insists on surveillance restrictions. The government’s attack on Venezuela last month that led to the capture of President Nicolás Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.

Anthropic has until 5:01 p.m. ET on Friday to reach a deal with the Pentagon, which has threatened consequences against the company if it doesn’t allow the government unrestricted use.

Altman’s comments come as the Financial Times reports that executives at Amazon, Google, and Microsoft are being pushed by workers to support Anthropic in its dispute with the Pentagon and adopt similar guardrails as the Claude company in any work they undertake with the US military.

According to a memo obtained by several media outlets, Altman told staff OpenAI believes “that AI should not be used for mass surveillance or autonomous lethal weapons, and that humans should remain in the loop for high-stakes automated decisions. These are our main red lines.”

Anthropic, the company behind the AI chatbot Claude, was one of several firms that received a $200 million contract from the Department of Defense for “agentic workflows.”

Since then, tensions between Anthropic and the Pentagon have reportedly risen as the startup insists on surveillance restrictions. The government’s attack on Venezuela last month that led to the capture of President Nicolás Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.

Anthropic has until 5:01 p.m. ET on Friday to reach a deal with the Pentagon, which has threatened consequences against the company if it doesn’t allow the government unrestricted use.

Altman’s comments come as the Financial Times reports that executives at Amazon, Google, and Microsoft are being pushed by workers to support Anthropic in its dispute with the Pentagon and adopt similar guardrails as the Claude company in any work they undertake with the US military.

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Jon Keegan

Report: Anthropic CEO Amodei meeting with Hegseth at the Pentagon as tensions mount

Anthropic CEO Dario Amodei has been summoned to meet with Defense Secretary Pete Hegseth at the Pentagon on Tuesday, according to a report from Axios. Tensions are running high between the Trump administration and Anthropic, as the startup’s surveillance restrictions on the use of its AI are reportedly causing outrage within the Pentagon.

Last month’s attack on Venezuela that led to the capture of Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.

Per the report, the Pentagon is considering effectively blacklisting Anthropic’s AI from government work if it doesn’t capitulate to the administration’s terms.

Antagonizing the Trump administration could cause Anthropic to face potential regulatory hurdles as it races toward an IPO this year. The company recently hired former Microsoft CFO Chris Liddel to its board, who formerly served as deputy White House chief of staff in the first Trump administration.

Last month’s attack on Venezuela that led to the capture of Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.

Per the report, the Pentagon is considering effectively blacklisting Anthropic’s AI from government work if it doesn’t capitulate to the administration’s terms.

Antagonizing the Trump administration could cause Anthropic to face potential regulatory hurdles as it races toward an IPO this year. The company recently hired former Microsoft CFO Chris Liddel to its board, who formerly served as deputy White House chief of staff in the first Trump administration.

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