In a January 24, 2025 interview, Khosla Ventures Managing Director Keith Rabois discusses the geopolitical AI race, the high‑profile investment pledges announced at the Trump inauguration, and the emerging relationship between Silicon Valley and the new administration. He argues that the United States’ future hinges on out‑innovating the Chinese Communist Party in artificial intelligence, and that both Elon Musk and Sam Altman are valuable allies because their companies keep AI development on American soil. Rabois frames the $600 billion Saudi investment and the "Stargate" AI fund (initial $100 billion, up to $500 billion) as strategic capital that will cement U.S. leadership. He praises the shift from a perceived anti‑innovation stance under the previous administration to a pro‑business, pro‑innovation agenda under President Trump, suggesting a more laissez‑faire regulatory environment for tech firms. When asked about joining the administration, Rabois declines, emphasizing that venture capitalists must stay embedded in the fast‑moving tech ecosystem to be effective, and that his greatest impact is mentoring founders and channeling ideas to the right people.
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Well, President Trump speaking to the crowd at Davos today touting two high profile investment pledges in his first week. Saudi Arabia saying it will invest $600 billion in the U.S. during the next four years. And the Stargate project, which will deploy $100 billion immediately and up to $500 billion longer term. Well, joining us now in an exclusive interview is Keith Raboy, Managing director at Khosla Ventures. He was also a general partner at Founders Fund, has served on multiple boards and has been an outspoken supporter of President Trump. And Keith, it's great to have you back on the show.
It's a pleasure to be with you.
So that's exactly where I want to start. I want to start with Stargate because not only does it really reflect this new incoming era of AI and is raising a lot of questions in its own right, but it has also thrust into the limelight this long simmering, now very public feud between two figures that you know personally very well, and that is Elon Musk and Sam Altman. I want to get your thoughts on all of it.
Well, the future of this country and the future of the world is predicated on AI. And whoever succeeds at innovating AI faster and better is going to dominate the economy over the next century. It's either going to be the United States or the ccp. And we just as an existential threat to the United States, economic power drives military political power. This is why we won World War II. And so fortunately, both Elon and Sam want to build technology in America and want to compete with the ccp. So both are good for President Trump and both are good for America. Obviously, the future of technology being in one person's hands, there's going to be a competition for it when everybody knows that the future is AI. Elon and Sam are competitive. They have competitive products that companies. What's different a little bit is that many of, many of the people that support Sam and are excited about OpenAI are also friends and quite enthusiastic supporters of X and all of these projects, Tesla, Space X, etc. Starlink. So that's unusual where you have a combination of people that are fans of both, but ultimately both Elon and Sam are great for America. They're doing great things for America. Their companies are building America. They're going to make America more prosperous and secure. And that's the most important point.
Yeah, it also speaks to the prominence of technology as we do have this new administration taking the helm. I mean, look no further than the inauguration this week and the fact that you had the CEOs and founders of some of the very largest American tech companies on the planet standing in attendance. The chief US Policy strategist at AGF Investments had this to say about that. He basically said that this is a sea change. The dominance of the tech sector is now the biggest economic story in Washington. And that with all the Silicon Valley superstars at the inauguration, they have, quote, bowed to Trump, and in exchange, they will enjoy a gentle, laissez faire regulatory climate for the next four years. I wonder if you think that's the right analysis here and what all of these technologists being so intertwined with the administration is going to mean for policy.
Well, I'll paraphrase the next Treasury Secretary, which is we're going. We're shifting from the most anti business, anti innovation presidency probably in American history to one that aspires to be pro innovation, pro business. And so obviously, the innovation people, those are my friends. Those are the people you just showed photos of. Those are the people that are going to drive a more prosperous America for everybody. And it's exciting that this president wants to embrace that. The only way we can grow out of our debt in our problems is to improve productivity, improve growth. And you need to do that through technology. Technology is this magic wand that makes things that used to be expensive, cheap, and, and it makes things that used to be impossible, possible. And so, as the President alluded to in some pretty compelling passages in his inaugural address, this is what has made America great. We, you know, have solved all kinds of diseases. We put the man on the moon. We've put all the world's information in your pocket. These are things that technologists do. And there's another whole century forthcoming if the government will get out of the way. The Biden Harris administration was an unmitigated disaster for American innovation.
And.
And fortunately, that error is over. The error of excuses is over. Every entrepreneur I know, including those who voted for Kamala, is now excited and challenged by the President. They've been motivated by the President. It resonated both in the heartland and with technologists. And you're going to see innovation like you've never seen before. Sort of paraphrasing the President.
Are you in talks to join the administration? Would you be open to it?
Oh, no. I am a entrepreneur and I am a venture capitalist. The rapidly emerging nature of technology does not allow you to take two, three, four years off and come back and still be good at what you do. So I want to pioneer the next generation of American success, find undiscovered talent back. Founders Council founders be the consigliere as they build their iconic companies. If I take one, two, three years off, I'm never coming back. And so right now, it's really exciting and invigorating. I can, you know, I have ideas, I can spoon feed them to the right people. Hopefully they like them and hopefully they embrace them. That's the most value I can add.
