MAGA Tech VCs React to Democratic Sweep with Complaints

Democrats across the country won decisively on Tuesday in a midterm election with major political consequences. Deep-red South Carolina, North Carolina, Iowa, Ohio and Kansas all saw unexpected Democratic wins, reflecting voter anger over rising costs and executive overreach.

Texas, a state where high-profile technology leaders and venture capitalists have moved in recent years, was a closely watched battleground. James Talarico was elected the first Democratic U.S. senator from Texas since 1988. Gina Hinojosa was elected the first Democratic governor in Texas since 1995.

Some President Donald Trump supporters in Texas reacted negatively to the results, including people who had recently moved to the state to pursue their political preferences.

Jason Calacanis, who moved to Texas from California in 2024, said “don’t blame me” as he watched prediction markets react Tuesday night. The venture capitalist said he had voted a straight Republican ticket and had not “ruined” Texas like other Californians who had moved to the state.

It was clear over the past year that President Trump was going to lead the GOP off the cliff because of ice, the war, tariffs, the other war and inflation.

… but I never expected Texas to turn blue 🤯

Ugh, I moved here to get away from the left lunacy! pic.twitter.com/VTFzfXchHp

— @jason (@Jason) November 4, 2026

Mike Solana of Founders Fund wrote on Tuesday night: “texas + california politics would (will?) be a much, much, *much* worse place to live than california.” New York Post columnist Lydia Moynihan replied: “CA politics but without the beach and good weather.”

Elon Musk, a prominent Trump supporter who moved to Texas, spent almost half a billion dollars on the midterm elections. After Republican losses became clear, Musk deleted many of his recent posts promoting Republican candidates.

Elon Musk spent over $200 million on this basically pic.twitter.com/YMJT5Gb3Fb

— nude gingrich (@JarJarFan69) November 4, 2026

Musk campaigned especially hard against James Talarico, who defeated Republican Ken Paxton in the Senate race by 55% to 43%, according to the Associated Press. Musk argued that Talarico wanted to turn children transgender, a claim that did not prevent Talarico’s victory.

Musk, who led the federal-government overhaul known as DOGE in 2025, has previously said he feared Democrats might put him in jail if they took power.

How did the Dow Jones Industrial Average and technology stocks react?

The Dow Jones Industrial Average rose 1,500 points on Wednesday, while some AI-dependent stocks did not join the rally. SpaceX shares fell 3% to $137, and Tesla shares fell 2%.

The Dow Jones Industrial Average gained 1,500 points, while SpaceX and Tesla shares declined.

Some venture capitalists responded by emphasizing continued work with the technology sector. Christian Garrett, a partner at 137 Ventures with connections to Peter Thiel and Alex Karp, posted:

Time to get to work! 🇺🇸 The Technology Sector has new partners to work with and our companies and people continue to be the best in the world. Long the West!

— Christian Garrett (@CGarrett_15) November 4, 2026

The election results also prompted criticism from some Democrats. On Wednesday morning, soon-to-be House Speaker Hakeem Jeffries appeared on MSNOW and said Democrats had not won in order to seek revenge.

Jeffries received donations from some technology and defense industry figures and companies. Anduril CEO Brian Schimpf donated $100,000, while Palantir’s Mehdi Allhassani donated more than $44,000. Lockheed Martin, Northrop Grumman, Raytheon, Boeing and General Dynamics each gave Jeffries $10,000.

Exit polls also indicated skepticism about artificial intelligence. According to NBC News, 57% of voters said AI would do more harm than good for society, while 24% said it would do more good than harm. In addition, 76% said they would oppose building a data center in their community.

The election results raised questions about how technology leaders would respond to changing voter attitudes and potential government investigations. The results also showed that concerns about AI and local data-center construction were part of the political landscape.

Why did Ted Cruz warn about investigations into business leaders?

Ted Cruz warned that Democrats could use subpoenas to investigate business executives who had worked with the president, including Elon Musk. Cruz made the remarks as election results came in and Democrats appeared poised for major gains.

Cruz said Democrats might use congressional investigations to scrutinize executives and companies.

As results came in Tuesday night, Cruz appeared on the All-In livestream and expressed concern about possible investigations of technology-industry figures.

“The Democrats have already foreshadowed that if they have one or both houses, they’re going to use subpoenas to go after business executives who’ve worked with the president, to go after Elon Musk,” said Cruz.

“They’ve already declared they intend to engage in lawfare and in open attacks. Bernie Sanders has suggested nationalizing, seizing SpaceX and Starlink. This is stuff out of like the Fidel Castro’s Cuba that they’re talking about,” the senator said.

Some social media users celebrated the election results, and some posts called for political retaliation.

“It’s a pretty jarring day waking up and seeing last night’s election results,” one X user wrote. “If you’re someone who still believes in President Trump, I’m sure you’re feeling concerned and maybe even a little scared. So let me make this clear: We are going to eat you.”

Another joke referred to Civil War, the 2024 film directed by Alex Garland. The film drew criticism when it was released for depicting an alliance between California and Texas that some viewers considered implausible.

You all owe Alex Garland an apology pic.twitter.com/LBs29HBgCK

— Sprat (@RealSprat) November 4, 2026

Which election results were still outstanding?

Vote counting continued in several races and ballot measures. The closest contests included the Mississippi and Alaska Senate races, while California was still counting votes on Proposition 40.

Mississippi, Alaska and California had unresolved election counts at the time of reporting.

The Mississippi U.S. Senate race remained undecided, with 96% of votes counted. Democrat Scott Colom had 48.95%, compared with Republican Cindy Hyde-Smith at 48.94%. Colom had 462,821 votes and Hyde-Smith had 462,778, a difference of 43 votes. Independent candidate Ty Pinkins had 2%, or 19,935 votes, according to the Associated Press.

Votes were also still being counted in California on Proposition 40, described as a one-time 5% tax on wealth above a billion dollars. With 60% of the votes counted, 55% opposed the measure and 44% supported it, according to the Associated Press.

The Alaska Senate race also remained undecided, with 74% of votes counted. Democrat Mary Peltola had 48.2%, or 102,701 votes, while Republican Dan S. Sullivan had 47.9%, or 102,075 votes, according to the Associated Press.

What did voters say about AI and data centers?

According to NBC News, 57% of voters said AI would do more harm than good for society, and 76% opposed a data center in their community.

The reported exit-poll figures showed more voters expressing concern than support for AI’s effects on society.

• AI’s effect: 57% said AI would do more harm than good, while 24% said it would do more good than harm.
• Data centers: 76% said they would oppose construction of a data center in their community.

The poll figures distinguish broad views about AI’s social effects from opposition to a specific local project: data-center construction.

Frequently asked questions about the election results

Who won the Texas Senate race? James Talarico defeated Ken Paxton, 55% to 43%, according to the Associated Press.

How much did the Dow Jones Industrial Average rise? The Dow Jones Industrial Average rose 1,500 points on Wednesday.

Which Senate races were still undecided? The Mississippi and Alaska Senate races remained undecided at the time of reporting.

What did voters think about data centers? According to NBC News exit polls, 76% of voters said they would oppose a data center being built in their community.