'I'm Going to Unleash the Brains': Top GOP Recall Challenger Larry Elder on Big Tech

Harri Weber

Harri is dot.LA's senior finance reporter. She previously worked for Gizmodo, Fast Company, VentureBeat and Flipboard. Find her on Twitter and send tips on L.A. startups and venture capital to harrison@dot.la.

Larry Elder

Gov. Gavin Newsom is holding onto a narrow lead, but if he fails to rally apathetic Democratic voters in the fast-approaching recall election, the Republican frontrunner could upend the state's outlook on the tech industry.


Newsom, who grew up a stone's throw from Silicon Valley and who brought in a former Google executive into his administration, is facing a leading competitor who believes "big tech is after us and what we believe in." If he's ousted by a Republican, the next governor could even tip the balance of the U.S. Senate should 88-year-old Diane Feinstein have to bow out. She's only half way through her six-year term.

It's no wonder Netflix co-CEO Reed Hastings and other tech leaders like former Google CEO Eric Schmidt and former Yahoo CEO Marissa Mayer are collectively doling out millions to fight the $276 million recall.

Newsom's challengers are largely Republican, and polls say Republican voters are more motivated to vote come September 14. Among the GOP, two recent polls show Black conservative talk show host Larry Elder, who has stoked outrage over his views on women in the workplace and systemic racism, is leading others in the race to oust the Democratic governor.

He is followed by former San Diego Mayor Kevin Faulconer and perennial candidate and attorney John Cox — two candidates who appear to have little to say on the matter of big tech. The same polls show reality-TV star and former Olympian Caitlyn Jenner trailing far behind. A third poll shows Elder ranking second, behind Democrat and 29-year-old millionaire YouTuber Kevin Paffrath, who's pitched himself as a centrist alternative.

Elder's coronavirus-focused campaign has called for unwinding existing coronavirus restrictions. It's blasted pandemic-era state and federal relief programs and pointed to the many failings of the Employment Development Department (EDD). Elder's website is comparably sparse on other topics, briefly touching on school choice and lowering taxes. And he has shown little interest in defining substantial policies.

Where does the current leading GOP candidate stand on tech, the industry that's swelled to define much of the sunshine state? Elder's comments run the gamut, from vowing to "unleash the brains" in Silicon Valley to tweeting that big tech wants to "destroy" conservatives' income and "cancel" them.

That's in stark contrast to Newsom, who literally wrote a book called "How to Take the Town Square Digital." The former San Francisco mayor campaigned on expanding early access to computer science education and boosting broadband infrastructure. Recently he's leaned on big tech to power the state's response to COVID-19, allegedly hampering state and local health departments in the process, per Protocol.

To get a glimpse of what a victory by Elder, who has never held public office but fancies himself the "sage of South Central," would mean for the tech sector, we took a look at the leading GOP candidate's statements to date on Silicon Valley, YouTube, Google, Russian bots, workers' rights and more. Elder, who has shown a distaste for mainstream press, did not respond to multiple requests for an interview.

"I'm Going to Unleash the Brains"

In an interview with the "San Joaquin Valley Sun" earlier this month, Elder said he'd lean on Silicon Valley's "brainiacs" to solve the state's water crisis.

"Israel is water self sufficient, so is Dubai. Israel sits on the coast of a little body of water known as the Mediterranean. We have a little body of water known as the Pacific Ocean," he said "Why we can't [sic] figure out how to become water self-sufficient when we have all these brainiacs in Silicon Valley. So I'm going to unleash the brains and the technology and use the bully pulpit to explain to people why we need to do this."

He may have a tough time. While humans have removed salt from water for thousands of years, wide-scale desalination is an energy-intensive process with serious drawbacks. Among them: high costs, harm to marine life and emissions from plants powered by fossil fuels. But this statement response is typical of Elder, who rarely delves into the finer points of issues.

"Big Tech Is After Us"

Elder has contributed to sites known for misinformation, and the candidate says he has been demonized by big tech. In a tweet about his account being limited by YouTube, Elder promoted a subscription to his now-defunct homegrown video site and said, "Big Tech is after us and what we believe in. They want to destroy our income because they want to cancel us!"

Elder's video site, LarryTube.com, has since merged with the Epoch Times' video site. The Falun-Gong backed Epoch Times has relied heavily on Facebook to build its large subscriber base and has been criticized for misinformation campaigns.

While claims that social media companies are biased against conservatives lack evidence, Elder has covered the topic extensively, including on YouTube and in his columns.

Similarly, on YouTube this past April, Elder decried Twitter's decision to ban former President Trump from its platform. In his buttery talk-radio voice — a foil to Newsom's Will Arnett-esque gravel — he said: "You think Americans are too stupid to figure out when somebody's telling the truth or when somebody's lying."

On Russian Bots

Elder is skeptical of Russian interference in the election. In a 2018 column titled "Russian Bots vs. Media/Academia/Hollywood — Which Had A Bigger Impact On The Election?," Elder downplayed the impact of fake accounts that were created to promote election misinformation. He wrote, "Whatever influence Russia may have had on the elections is dwarfed by the 'collusion' of the largely anti-GOP media, academia and Hollywood. If the right dominated these fields, congressional Democrats would demand hearings."

On the EDD's "Antiquated Technology"

Elder wants to revamp the website for the Employment Development Department, which doles out Californian's unemployment benefits. Elder's campaign site devotes special attention to the EDD, which has struggled with a vast backlog of unemployment claims and failed to detect an estimated $31 billion in fraud. In one paragraph, the candidate pledged to revamp the agency's technology and "promote public-private partnerships."

"As governor, I would revamp the EDD's antiquated technology, which created an unprecedented backlog and the absurdity of the agency not being able to automatically process some half of its claims online at the height of the pandemic. Gavin Newsom wants to simply throw more money at the problem. I will implement structural reforms to remove roadblocks to efficiency in the EDD's IT system and across the state government. That means promoting public-private partnerships and overhauling the state government's cumbersome procurement process, which currently favors Sacramento insiders over easy access to innovation."

On Women's Rights and Venture Capital

Elder thinks mothers are a business risk. In his book, "Showdown: Confronting Bias, Lies, and the Special Interests that Divide America," Elder wrote, "Are there legitimate business reasons for a venture capitalist to ask a female entrepreneur whether and when she intends to have children? Hell, yes."

"Call it protecting an investment," the candidate said in the 2002 book.

On Reddit and Gamestonks

Elder suggests that the trading app Robinhood allows gambling. In another YouTube video, Elder commented on the Reddit-driven meme stock craze, saying, "I've been trying to understand this Gamestop thing, and how it's been characterized as 'David versus Goliath.' I am a big fan of investing in the stock market. I'm a big fan of believing in America. I believe in investing. I don't believe in gambling. This strikes me as gambing."

There Should Be "a Conservative Google"

Elder doesn't appear to support the antitrust case against Google.

When social media companies limited the reach of a "New York Post" story on Hunter Biden, Elder said in a Fox News interview: "It's an outrage. It's akin to making an in-kind campaign contribution — the way that Google admitted that they restricted the New York Post story [...] This is absolutely outrageous and all of these big tech companies are in bed with the Biden administration and they want Donald Trump to go down."

He continued, commenting on the Justice Department's antitrust case against Google:

"I've never been fond of government busting up large corporations. The larger the corporation typically the more arrogant it gets, the more dismissive it becomes of its consumers, and that's what you've got here. In the past, when the government's gone after big companies like IBM, like Microsoft, it's been because their competitors have complained.

"In this case the consumers are complaining, and it seems to me the response ought to be a conservative Google. There ought to be some sort of conservative alternatives. And there is an alternative to Twitter, it's called Parlor, and I joined that a few days ago. And it seems to me [..] we ought to be coming up with our own alternatives for search engines and social media platforms, so we don't have to run the risk of being screwed by these people who hate our guts."

Who Gave the AI Access?

🔦 Spotlight

Happy Friday, Los Angeles.

The newest employee in the office does not need a desk, a salary or a coffee order. But it may have access to your company’s emails, financial records, customer data and software systems.

That raises a fairly important question: Who decides what an AI agent is allowed to do?

El Segundo-based cybersecurity company Saviynt is building its next chapter around the answer.

Carrick Capital Partners announced this week that it closed a $600M continuation vehicle for Saviynt, including a new $255M investment in the company. The transaction allowed Carrick’s existing investors to either take liquidity or remain invested, while also providing liquidity to Saviynt employees through a tender offer.

Continuation vehicles are not exactly known for making gripping Friday reading. The company behind this one is considerably more interesting.

Saviynt develops identity security software that helps businesses determine who can access their applications, data and infrastructure. Increasingly, however, “who” does not refer exclusively to a person.

Companies are deploying AI agents that can retrieve information, write code, communicate with customers and complete multistep tasks with limited supervision. These digital workers need access to company systems to be useful, but every new permission also creates another opportunity for sensitive information to be exposed or an unintended action to be taken.

In other words, AI agents may be tireless employees. They are not necessarily trustworthy ones.

Saviynt is addressing that problem through Zuma, its platform for discovering, securing and governing AI agents, large language models and other nonhuman identities alongside a company’s human workforce. The goal is to give businesses one place to determine what every identity can access, whether it belongs to an employee, a contractor, a software application or an autonomous agent operating at machine speed.

The opportunity appears to be growing quickly. Saviynt has surpassed $300M in annual recurring revenue, up from approximately $10M when Carrick first invested. The company says bookings have increased by more than 80% this year while customer retention remains at 96%.

The new investment was completed as part of the final close of Saviynt’s previously announced $700M Series B, which valued the company at approximately $3B. Carrick’s continuation vehicle was led by Coller Capital and co-led by HSBC Asset Management, giving the investment firm more time and capital to remain behind one of its strongest-performing companies.

For Saviynt, the funding will support further development of its identity platform, deeper integrations with major cloud and software providers and its push to become a central security layer for the agentic workplace.

That ambition reflects a broader change taking place inside companies. The first wave of enterprise AI focused largely on what the technology could generate. The next phase is about what it can actually do, and whether businesses can maintain control once AI moves from answering questions to taking action.

Saviynt is betting that identity will become the gatekeeper.

AI agents are gaining access to the digital workplace, whether corporate security teams are ready for them or not.

Someone still has to hold the keys.

More from this week’s LA startup and venture scene below.

🤝 Venture Deals

    LA Venture Funds

    • Fulcrum Ventures participated in Critical Materials Group’s $10.3M seed round, led by Overmatch Ventures and joined by Victory Six Advisors. The Austin-based defense manufacturer will use the funding to develop and commission modular, automation-ready production systems designed to expand domestic manufacturing capacity for munitions and advanced energetic materials. - learn more
    • Fusion VC participated in Newlight’s $9M seed round alongside lomarlabs, BIRD Energy, Undeterred Capital and CiRi Ventures. The San Francisco-based maritime technology company recently demonstrated its hydrogen-hybrid retrofit on an 8,500-nautical-mile commercial voyage, reducing fuel consumption by 24% and carbon dioxide emissions by 28%. - learn more
    • Rebel Fund participated in Metal’s $4.5M seed round alongside a16z, Y Combinator, Gaingels, Indus Valley Capital, Phaze Ventures and Pioneer Fund. Metal will use the funding to build an AI-native operating system that helps founders identify relevant investors, manage outreach and automate other parts of the venture fundraising process. - learn more
    • UP.Partners participated in Reframe Systems’ $40M funding round, led by Energy Impact Partners and joined by Counterpart Ventures, E12 Ventures, Global Brain, Thin Line Capital and LACI Impact Fund. The homebuilding startup will use the capital to expand its network of robotics-powered microfactories, which it says can construct homes three times faster and at 35% lower cost than traditional methods. - learn more
    • Clocktower Technology Ventures participated in Sharpi’s $4M seed round, co-led by NXTP and ONEVC and joined by MAYA Capital. The Brazilian startup will use the funding to expand its team and develop autonomous AI agents that connect WhatsApp conversations with enterprise systems to automate B2B sales tasks such as order processing, customer follow-ups and demand generation. - learn more

    LA Exits

    • Extensiv, a California-based provider of warehouse management and fulfillment software, has been acquired by Descartes Systems Group for approximately $120M in cash. The acquisition adds Extensiv’s AI-enabled inventory, order, billing and omnichannel fulfillment tools to Descartes’ logistics network, strengthening its offerings for third-party logistics providers and ecommerce brands. - learn more
    • DocSolutionUSA has been acquired by Stewart Information Services alongside ProTitleUSA, adding mortgage document generation and automation capabilities to Stewart’s title services platform. The companies provide title, document and due diligence services for mortgage servicers, investors and capital markets clients; financial terms were not disclosed. - learn more
    • Fysh Foods, the Los Angeles-based plant-based seafood brand founded by creator and entrepreneur Zoya Biglary, has been acquired by City Roots Hospitality in an all-cash deal with undisclosed terms. City Roots plans to introduce Fysh Foods’ raw fish alternatives across its New York City restaurants and potentially expand the brand beyond the city as its restaurant portfolio grows - learn more

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      An LA AI Company Just Won Entertainment’s Backing

      🔦 Spotlight

      Hello LA.

      The entertainment industry has spent the past several years debating what generative AI could take from creators.

      This week, some of its biggest companies put money behind an AI startup promising to build something for them instead.

      Los Angeles-based Stability AI raised $76M in Series B funding from an investor group that includes Electronic Arts, Sony Music Group, Universal Music Group and Warner Music Group. AMD Ventures and Pacific Alliance Ventures also joined the round, while LA-based MANTIS Capital and Sound Ventures are among the company’s existing backers.

      The financing brings Stability AI’s total funding under CEO Prem Akkaraju to $232M, including two equity rounds and convertible notes. The company plans to use the new capital to expand its creative production tools, applied research and professional services across music, gaming and entertainment.

      The amount is notable. The names attached to it are the bigger story.

      Generative AI’s arrival in entertainment has been anything but quiet. Artists have questioned whether their work was used to train models without permission. Studios have faced pressure over how the technology could affect jobs. Record labels have pursued AI companies in court while simultaneously exploring how the same technology might fit into their businesses.

      Now, several of the world’s largest entertainment companies are investing directly in one.

      That does not mean the industry has resolved its concerns about AI. It means some of its biggest players would rather help shape the technology than wait to see what it becomes.

      Stability AI is positioning itself for that opening. Rather than focusing solely on general-purpose models, the company is building tools specifically for professional creatives. Its recently launched Stable Audio 3.0 was trained on fully licensed music and lets artists generate, edit and arrange audio through a web platform or directly inside digital audio workstations.

      Image Source: Stability AI

      That licensed-data approach is central to the pitch. The next phase of creative AI will not be decided only by which company produces the most impressive model. It will also depend on which companies can earn the trust of the artists, studios and rights holders whose work gives those models value.

      For its new strategic investors, the round offers more than financial upside. It creates a closer view into how generative AI may change production, a voice in how the tools develop and an opportunity to establish rules before those rules are established for them.

      For Stability AI, the backing provides something equally important: credibility inside industries that have every reason to scrutinize what it is building.

      The company now has capital and access to some of the largest catalogs, franchises and creative workforces in entertainment. What it does with that access will determine whether this becomes a meaningful alliance or simply an impressive collection of logos.

      Either way, the industry is no longer watching from a safe distance.

      It has entered the room.

      LA’s Air-Taxi Plans Are Coming Downtown

      While Stability AI is trying to change how entertainment gets made, Archer Aviation wants to change how people get to it.

      AEG and Archer announced plans to develop downtown Los Angeles’ first vertiport at L.A. LIVE, creating a potential new stop in Archer’s proposed electric air-taxi network ahead of the 2028 Olympic and Paralympic Games.

      Image Source: Archer

      The planned site would sit beside Crypto.com Arena and allow passengers to travel to and from the entertainment district aboard Archer’s Midnight aircraft. The company says its network could turn drives that take an hour or longer into electric flights lasting approximately 10 to 20 minutes.

      Archer has already identified SoFi Stadium, USC and Hollywood Burbank Airport as possible locations, with its recently acquired Hawthorne Airport expected to serve as the network’s central operating hub. As the official air-taxi provider of LA28 and Team USA, Archer has an unusually visible deadline for turning those plans into something tangible.

      AEG and Archer have completed an initial feasibility study of the L.A. LIVE site, including reviews of land use, airspace, power availability and community impact. The next phase will examine operations and the passenger experience.

      There is still a substantial distance between a proposed vertiport and a functioning air-taxi network. The infrastructure must be built, regulatory approvals must be secured and passengers must be persuaded that flying across the city is safer and more practical than staying on the ground.

      Still, few locations could make that future feel more real than L.A. LIVE. Millions of people already pass through the district for concerts, games and major events. Placing a vertiport there would bring urban air mobility out of the concept stage and directly into public view.

      Together, this week’s announcements show Los Angeles becoming a testing ground for two technologies still moving from promise toward everyday use.

      One could reshape how entertainment is created. The other could reshape how Angelenos reach it.

      In a city famous for both its creative industries and its traffic, that feels appropriately on brand.

      More from this week’s LA startup and venture scene below.

      🤝 Venture Deals

        LA Companies

        • Atorie raised a $9.5M seed round from investors including a16z speedrun, Night Capital and Lightspeed Venture Partners’ Jeremy Liew. The AI-powered fashion startup connects consumers directly with luxury manufacturers to offer high-quality goods without traditional designer markups, and will use the funding to expand logistics, production and its AI shopping tools. - learn more
        • Long Beach-based Maglut Heavy Industries emerged from stealth with $3.1M in pre-seed funding from Wave Function, Nova Threshold and Julian Capital. The startup is developing a chromatography-based system to process and refine rare earth elements domestically, with pilot tests producing materials at more than 99.9% purity. - learn more

        LA Venture Funds
        • MANTIS Venture Capital participated in Voya Energy’s $35M Series A, led by Energy Impact Partners and joined by John Doerr, StepStone, Founders Fund, Overmatch and Seven Stars. The Hayward-based startup will use the funding to commercialize its aluminum-fueled generators, which provide clean, off-grid power for data centers and other energy-intensive operations without combustion or local air emissions. - learn more
        • Regeneration.VC participated in eComID’s $17M seed round, led by Systemiq Capital and joined by Course Corrected, Stadium and returning investor CapitalT. The Stockholm-based startup will use the funding to expand internationally and scale its AI-powered Shopping Passport, which helps retailers personalize sizing and product discovery while reducing returns. - learn more
        • Clocktower Technology Ventures participated in Helcim’s $53M Series C, led by BDC Capital’s Growth Venture Fund and joined by new investors Curql Collective and LA-based Gold House Ventures. The Calgary payments company will use the funding to expand its platform, develop additional financial services and serve more small and midsize businesses across North America. - learn more

        LA Exits

        • Altruist agreed to be acquired by Vanguard, giving the Los Angeles-based wealth technology and custody platform greater resources to expand its tools for independent financial advisors. Altruist will continue operating as a standalone business under its existing leadership and brand after the deal closes, which is expected later this year pending regulatory approval; financial terms were not disclosed. - learn more
        • Personality AI has been acquired by WildBrain for approximately $11M in cash and 1M WildBrain shares upfront, with additional payments tied to future performance. The startup develops kid-safe conversational AI experiences for entertainment characters, including “Hey Peppa Pig,” and will help WildBrain expand its franchises into interactive products across toys, apps and digital platforms. - learn more

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          This Torrance Startup Just Raised $1B to Mass-Produce Hypersonic Missiles

          🔦 Spotlight

          Happy Friday, Los Angeles.

          Castelion has spent the past four years trying to prove that hypersonic missiles do not need to take decades to develop or cost so much that the military can only afford a limited supply.

          Now comes the harder part: producing them at scale.

          The Torrance-based defense startup raised a $1B Series C at a $13B valuation. The financing includes $800M in equity and a $250M revolving credit facility, making it one of the largest recent raises for an LA defense technology company.

          JPMorganChase’s Strategic Investment Group, Andreessen Horowitz and Carlyle co-led the round. Lightspeed Venture Partners, Lavrock Ventures, Altimeter, General Catalyst, T. Rowe Price and LA-based Interlagos Capital also participated.

          Castelion will use the capital to ramp production of Blackbeard, its low-cost hypersonic strike missile, while developing a longer-range precision weapon and new defensive systems. Hundreds of millions of dollars will go toward expanding manufacturing at Project Ranger, the company’s 1,000-acre production campus in New Mexico.

          Image Source: Castelion

          Blackbeard was designed in California, will be built in New Mexico and is expected to enter service in 2027. Castelion says it has already secured more than $500M in U.S. military contracts over the past 18 months and moved the missile from a clean-sheet concept to an official program in fewer than four years.

          That timeline is central to Castelion’s pitch. Traditional defense programs are often associated with long development cycles, limited production runs and eye-watering costs. Castelion is applying the rapid testing and vertically integrated manufacturing approach popularized by commercial space companies to weapons production.

          But a $13B valuation changes the standard. Castelion is no longer being judged as a promising startup with an impressive prototype. It is being funded like a company expected to become a major part of the American defense industrial base.

          The question is no longer whether a startup can build a hypersonic missile. It is whether one can manufacture thousands of them without losing the speed, discipline and cost advantages that made it disruptive in the first place.

          For LA’s defense ecosystem, that shift matters. The region has become home to a growing number of companies promising to modernize how America builds critical hardware. Castelion now has the capital, contracts and facilities to show what happens when that promise reaches the factory floor.

          The next test will not be in a pitch deck. It will be in production.

          More from this week’s LA startup and venture scene below.

          🤝 Venture Deals

            LA Companies

            • Long Beach based Ampaire raised a $19M Series B led by DiamondStream Partners, with strategic participation from Alaska Star Ventures and IAGi Ventures, bringing its total funding to $68M. The hybrid-electric aviation company will use the capital to expand flight operations, produce additional Eco Caravan aircraft, advance regulatory certification and scale its manufacturing capabilities. - learn more

            LA Venture Funds
            • SUM Ventures participated in AssistMe’s €6.5M funding round, which was led by CRB Health Tech and Vorwerk Ventures and included several returning investors. The German care technology company will use the capital to expand across Europe, prepare for a U.S. launch and further develop alea, its digital platform for supporting caregivers and improving nursing-home operations. - learn more
            • CIV led Hypercubic’s $5.3M seed round, with participation from Y Combinator, Afore Capital, Pioneer Fund, Multimodal Ventures and several angel investors. The San Francisco startup will use the capital to develop AI agents that can analyze, document and rewrite decades-old COBOL systems, helping enterprises modernize critical mainframe software faster and with less risk. - learn more
            • Plus Capital participated in Wispr Flow’s $280M Series B, led by Menlo Ventures and joined by existing and new investors, valuing the AI voice company at $2B. The funding brings Wispr’s total capital raised to $361M and will support its expansion beyond dictation into meeting tools and proprietary speech technology, including its new Canto model. - learn more
            • Alexandria Venture Investments participated in Leal Therapeutics’ $30M Series A extension alongside new investor Eli Lilly and returning backers including OrbiMed, Newpath Partners and SV Health Investors’ Dementia Discovery Fund. The biotech company will use the funding to advance clinical trials of LTX-001 for schizophrenia and LTX-002 for ALS, with initial schizophrenia trial data expected by year-end. - learn more
            • BroadLight Capital participated in Higgsfield’s $400M Series B, led by DST Global and joined by investors including Goldman Sachs Alternatives, Smash Capital, Fifth Wall and Intel Capital. The AI video and image platform, now valued at $5.4B with $700M in annualized revenue, will use the funding for R&D, global infrastructure, AI hiring and international expansion. - learn more

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