Prof G Markets• Mar 31, 2026• 26:40Interview

Big Tech Is Now Advising the White House — What Could Go Wrong? | Prof G Markets

From Prof G Markets

Ed Elson

Executive Summary

President Trump has appointed a council of tech industry leaders (PCAST) to advise on science and technology, sparking debate over potential conflicts of interest and a deregulatory approach to AI.
SpaceX is reportedly preparing for a historic IPO with a $1.75 trillion valuation, fueling speculation that Elon Musk may merge Tesla into the new conglomerate to consolidate his AI efforts and ownership.
The escalating US-Iran conflict is causing severe economic fallout, including a nearly 60% surge in oil prices, a $10 trillion loss in global stock market value, and significantly higher inflation forecasts.
Markets are in a downturn, with the Nasdaq in correction territory, yet the Federal Reserve has signaled it will hold interest rates steady, looking past the immediate oil price shock.

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Concerns Raised

Escalating US-Iran conflict leading to an 'endless war' scenario with significant human and financial costs.
War-driven price shocks in oil and fertilizer are fueling global inflation and destabilizing markets.
Potential for conflicts of interest in AI regulation due to tech CEOs advising the White House.
Tesla's core auto business is described as declining, with margins falling by half in two years.

Opportunities Identified

The potential for a historic SpaceX IPO, which could be the largest in history.
The creation of a powerful, consolidated tech entity (SpaceX + X + xAI + Tesla) focused on AI and autonomy.
SpaceX's dominant market share in the launch (90%) and satellite internet (99%) industries.

Key Themes

The Blurring Lines Between Tech and Government

The appointment of tech CEOs like Marc Andreessen, Jensen Huang, and Mark Zuckerberg to the President's Council of Advisors on Science and Technology (PCAST) marks a significant shift from academic to industry-led government advising. This move, co-chaired by David Sacks, raises questions about inherent conflicts of interest and whether policy will favor corporate profits over the public good.

This trend could fundamentally reshape how critical technologies like AI are regulated in the United States, potentially leading to a less-regulated, 'free-for-all' environment that benefits the largest incumbent tech companies.

Corporate Consolidation and the Musk Empire

SpaceX is preparing for a historic IPO at a $1.75 trillion valuation, having already absorbed X and xAI. There is strong speculation that Tesla, framed as a declining car business but an emerging autonomy company, will also be merged into this single entity to centralize AI resources and resolve Elon Musk's ownership concerns.

This consolidation would create an unprecedented tech conglomerate under one individual's control, centralizing power over space exploration, satellite internet, social media, and AI, and fundamentally altering the investment thesis for Tesla.

The Economic Consequences of Geopolitical Conflict

The ongoing US-Iran conflict is having a direct and severe impact on the global economy. The war has driven oil prices up nearly 60% and fertilizer prices up almost 50%, leading to higher gas prices, a significant upward revision of inflation forecasts by the OECD, and a $10 trillion wipeout in global stock market value.

This highlights the fragility of the global economy and supply chains, demonstrating how regional conflicts can rapidly trigger worldwide financial instability that overrides central bank policies and impacts everything from consumer prices to retirement savings.

The Human and Financial Cost of 'Endless War'

The US-Iran conflict is escalating beyond initial estimates, with a growing US military presence, involvement from Houthi rebels, and a death toll surpassing 4,500. The direct cost to the US federal budget has already exceeded $25 billion, drawing parallels to past prolonged military engagements like the war in Iraq.

The rising costs, both in lives and taxpayer dollars, underscore the risk of public desensitization to prolonged conflicts and the importance of tracking these metrics to maintain an appropriate level of scrutiny and outrage.

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Topics

Geopolitics US-Iran Conflict Oil Prices Inflation Market Correction Nasdaq Federal Reserve Interest Rates SpaceX IPO Tesla Elon Musk AI Regulation PCAST Corporate Governance David Sacks

Processed Apr 13, 2026 yt-dlp + mlx-whisper + Gemini