A group of tech-backed super PACs has spent more than $25 million to influence down-ballot state legislative races in California this election cycle, often backing centrist-leaning Democrats facing more progressive opponents.<\/p>\n
Now, a liberal advocacy group is trying to make that support from Silicon Valley a political liability for tech-friendly moderates on the ballot in November.<\/p>\n
TechEquity Action, an Oakland nonprofit critical of Big Tech\u2019s influence, will launch a statewide advertising campaign today targeting Democrats backed by major tech donors. The group\u2019s $1 million ad campaign \u2014 a fraction of tech\u2019s spending this cycle \u2014 includes mailers, digital videos (opens in new tab)<\/a> and posts from social media influencers (opens in new tab)<\/a> that call out tech\u2019s spending in contests from the Bay Area to Orange County.<\/p>\n \u201cThey\u2019re spending heavily because they\u2019re counting on their dollars to make policymakers ignore public outcry on AI-driven job losses and rising costs from algorithmic surveillance pricing and data centers,\u201d said TechEquity Action founder Catherine Bracy.<\/p>\n She added, \u201cThat\u2019s why we\u2019re stepping in to inform Californians about how much tech interests are spending to influence policymaking in Sacramento.\u201d<\/p>\n Silicon Valley has historically spent little on campaigns for state legislative office, though the industry has a robust lobbying presence in Sacramento. But tech\u2019s foray into state races has been apparent this cycle due to the emergence of two super PACs that poured money into the June primary, mostly to support moderate Democrats.<\/p>\n Grow California, the larger of the two PACs, spent nearly $14.5 million in the primary and is bankrolled by billionaires Chris Larsen, a San Francisco crypto executive, and Tim Draper, a Silicon Valley venture capitalist. The second PAC, California Leads, spent more than $7.6 million in the same period and is heavily funded by Meta and Google.<\/p>\n Both PACs declined to comment on the ad campaign from TechEquity Action.<\/p>\n TechEquity Action has not disclosed who\u2019s funding the effort. The group has labeled it a \u201cpublic education campaign\u201d because the ads don\u2019t explicitly ask voters to support or oppose a particular candidate \u2014 a distinction that, unless potentially challenged in court, allows the group to avoid filing campaign finance reports.<\/p>\n TechEquity Action is the advocacy arm of a larger nonprofit, TechEquity, that supports policies to address economic inequities created by tech\u2019s growth. Its past donors have included a host of philanthropic foundations, including the Ford and MacArthur foundations.<\/p>\n TechEquity Action\u2019s ads emphasize how Big Tech\u2019s interest in legislative races comes as state lawmakers increasingly wade into bruising fights over AI regulation, data-center development and other hot-button tech issues.<\/p>\n \u201cThey\u2019re the newest corporate special interest, tech and AI billionaires, and they\u2019re spending all kinds of millions in California,\u201d one of its video ads states, as images of famous tech executives flash on the screen.\u00a0<\/p>\n The ad continues, \u201cThe billionaires\u2019 agenda: Replace California jobs with AI, block laws that keep kids safe online and raise electricity and water prices with data centers. They\u2019re trying to spend their way into having their way.\u201d<\/p>\n TechEquity Action\u2019s spots target four Dem-on-Dem legislative contests: Assembly District 12 (Marin County), where tech PACs support Eric Lucan against Jackie Elward; Assembly District 68 (Orange County), where the PACs support David Penaloza against Jessie Lopez; state Senate District 24 (west Los Angeles County), where the PACs support Brian Goldsmith against John Erickson; and Senate District 26 (downtown Los Angeles), where tech donors support Sara Hernandez against Sarah Rascon.<\/p>\n