Silicon Valley's surprising Trump shift

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Welcome to this edition of Tech Creator!

We explore Silicon Valley's surprising shift towards Trump with endorsements from Marc Andreessen and Ben Horowitz, and delve into the latest on making money with GPT Store apps.

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Silicon Valley's surprising Trump shift

The big news

Marc Andreessen and Ben Horowitz, the duo behind the influential venture capital firm Andreessen Horowitz, are making headlines with their plans to make hefty donations to pro-Trump political action committees. This isn't entirely out of the blue—these tech moguls have a history of libertarian leanings. They recently wrote a blog post declaring their intent to support the candidate they believe will best serve the interests of startups, or what they call "Little Tech," irrespective of party lines.

Why now?

On a recent podcast, Horowitz didn't mince words: “The future of our business, the future of technology, new technology, and the future of America is literally at stake.” He acknowledged that backing Trump might ruffle some feathers, but for "Little Tech," they believe Trump is the right choice.

The ripple effect

This endorsement has sent shockwaves through Silicon Valley. With 500 employees and $56 billion under management, Andreessen Horowitz isn't just another VC firm—they're trendsetters. Their move could prompt a domino effect, encouraging other tech leaders to publicly support Trump.

The Musk factor

Elon Musk's growing influence in the tech world is undeniable. Since Trump’s first election, Musk's wealth and power have surged, and he's used platforms like X (formerly Twitter) to push his political views. Musk’s vocal support for Trump has emboldened others, including Andreessen and Horowitz, to follow suit. Musk is reportedly donating $45 million per month to the pro-Trump America PAC, and he's not alone. Sequoia’s Doug Leone and Shaun Maguire, along with Khosla Ventures’ Keith Rabois, are also on board.

Policy alignments

Trump’s nomination of J.D. Vance, a pro-crypto, open-source AI advocate, aligns perfectly with Andreessen Horowitz's policy priorities. This makes their endorsement even more logical.

Frustrations with the current administration

Many in Silicon Valley are frustrated with the Biden administration’s approach to AI, crypto, and antitrust regulations. The end of the tech bull market, spurred by rate hikes, has many VCs nostalgic for the Trump era. Bradley Tusk of Tusk Ventures summed it up: “VCs look at their finances under Trump and Biden and conclude they were better off under Trump.”

The divide in the Valley

Not everyone in Silicon Valley is on board. Some VCs and tech workers are dismayed by the support for Trump and hope for a change in the Democratic candidate. Lee Edwards of Root Ventures said, “I’m pretty dismayed. But I don’t think it’s true that VC went MAGA. I think it’s true that some VCs went MAGA.”

Wrap-up

The political landscape in Silicon Valley is shifting, and Andreessen and Horowitz's endorsement of Trump is a major part of that change. Whether this sparks a broader movement in the tech industry remains to be seen. As always, stay tuned, stay informed, and we'll keep you updated on the latest twists and turns.

Making money with GPT Store apps

The early days of the GPT Store

OpenAI launched GPTs in November 2023, allowing custom applications of ChatGPT to perform tasks like creating art and summarizing documents. By January, the GPT Store opened, giving customers with paid subscriptions access to these apps. Instead of charging for downloads, OpenAI introduced a usage-based revenue model for developers.

Freemium models

While waiting for formal monetization, developers have gotten creative. Vicente Silveira and Karthik Ramasamy, former Big Tech employees, developed PDF Ai PDF, a GPT that analyzes PDF files. Their basic version is free through ChatGPT, with premium subscriptions available on their website. This freemium model has allowed them to attract 300,000 users without any advertising.

Ads and affiliate links

The developer of Humanizer Pro, a GPT that generates human-like text, uses their app as a lead generator for their company, Charly AI. They also monetize through click-based ads and affiliate links. This approach has been effective, especially since OpenAI's creator program is currently limited to US-based developers.

Community strategies and open access

Developers share strategies on OpenAI’s forums, discussing ads and affiliate marketing. With GPTs now free for all users, the potential user base has expanded significantly, providing more opportunities for revenue.

What’s next for GPT monetization?

OpenAI’s recent updates show confidence in the future of GPTs. With the launch of GPT-4o and GPTs becoming accessible to all ChatGPT users, developers can expect increased user engagement. For developers like Silveira and Ramasamy, this is a positive sign of growth and opportunity in the GPT ecosystem.

Your path to monetization

Here are a few tips for monetizing your GPTs:

1. Freemium models: Offer a basic version for free to attract users, then provide premium features for advanced capabilities.

2. Ads and affiliate links: Use your GPT as a lead generator and monetize through ads and affiliate marketing.

3. Community engagement: Participate in developer forums to share insights and learn from others about successful monetization strategies.

Wrap-up

The GPT Store is still in its infancy, but the opportunities are immense. Whether you're using freemium models, ads, affiliate links, or waiting for OpenAI’s formal monetization program, there are plenty of ways to make money with your GPTs. So, get creative, stay engaged with the community, and keep an eye on OpenAI’s updates.