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The story so far
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Democrats swept statewide elections across Texas, unseating key allies of Elon Musk and ending years of sweeping political accommodation for his companies. Musk contributed $474 million during this election cycle, including $212 million aimed at supporting outgoing Republican Attorney General Ken Paxton, who lost the US Senate race to Democrat James Talarico. Democrat Gina Hinojosa defeated outgoing Governor Greg Abbott, while Nathan Johnson won the attorney general post alongside Democratic sweeps in three seats on the 15th Court of Appeals and four seats on the Texas Supreme Court. [1]
The leadership change disrupts a uniquely permissive environment established under Abbott, who set up business courts and autonomous vehicle frameworks favorable to Tesla's driverless robotaxis. Hinojosa previously pushed for an inquiry into heavily redacted emails exchanged between Abbott and Musk, which the 15th Court of Appeals had blocked just prior to the judicial seats flipping. Tesla also relies on these appellate bodies after moving its incorporation and headquarters to Austin. [1]
The political transformation also introduces uncertainty for broader infrastructure. A preliminary assessment by Altimeter Capital's Brad Gerstner indicates that significant computing capacity scheduled for 2027 may face delays, threatening between 10 GW and 15 GW of planned additions. Reacting to the shift, Musk quipped that placing data centers in space was looking appealing as an alternative. [2]
After a historic election defeat in one of the most expensive elections in US election history, the state of Texas has turned blue. Along with this come potential implications for Elon Musk and his companies.
via Electrek
With a historic blue wave currently unfurling across the length and breadth of America, including in Texas, a state that is absolutely indispensable to the ongoing AI buildout, analysts are now mulling over what this seismic shift entails for the oncoming compute capacity additions. And, as per a preliminary assessment by Altimeter Capital's Brad Gerstner, a significant proportion of the compute capacity currently slated for 2027 may not come online as per schedule.
via Wccftech