Elon Musk's pledge to hand every American child a share of SpaceX is just "the tip of the iceberg," according to Brad Gerstner, CEO of Altimeter Capital and one of the investors behind the Trump Accounts program.
Gerstner told the New York Post that private contributions to Trump Accounts could total $100 billion by the end of 2027. That's a big number, even by Silicon Valley standards.
Musk, CEO of Space Exploration Technologies Corp. (NASDAQ:SPCX) and Tesla Inc. (NASDAQ:TSLA), announced his plan Monday on X.
"Next year, I will give one of my SpaceX shares to every kid in America," he wrote.
At current prices, the gift would be worth roughly $11 billion, nearly double the record-breaking Trump Accounts gift from Dell Technologies Inc. (NYSE:DELL) CEO Michael Dell. Trump Accounts would distribute the shares, though Musk has not publicly detailed the mechanics.
Gerstner expects other Silicon Valley leaders to join Dell as backers, including Ray Dalio and Gwynne Shotwell. Shotwell said in July she would gift a share of SpaceX stock to each of 2 million Trump Accounts, a gift now worth nearly $300 million.
Under 40 Next?
Eligibility could change soon. Trump Accounts are currently open only to citizens under 18. Deposits are invested in the stock market, and account holders gain access at 18 for college, a first home, a new business or continued growth.
Gerstner said he is working to expand the accounts to anyone under 40, with updated legislation possible within months. The expanded accounts could be used for retirement, education or starting a business. He said the proposal would also seek to make funding permanent.
"Welfare checks do not compound, but ownership compounds," Gerstner told the Post.
He framed the accounts as an entry point for Americans shut out of investing.
"It sucks to not even know how to get in the game… But with these accounts, everyone has a million dollars within their grasp," he said. "It makes sure every kid has a stake in the economy."
A Different Model
Musk's announcement came hours after Anthropic pledged 5% of its shares to a philanthropic fund. Anthropic said the fund will be a wholly owned LLC, giving it flexibility to make large donations to nonprofits or distribute money directly to specific populations.
Musk replied to Anthropic's post by recommending that it give shares directly to the public, adding that he would do the same.
The Post noted Trump Accounts are the only existing infrastructure for distributing stock to young Americans. Even so, Trump branding may deter some companies, particularly in the weeks before the midterm elections.
Critics see risks in the arrangement, including whether the government might go easier on a merger involving a company that has donated billions to the accounts.
Gerstner expects the next wave of pledges to come from the same Silicon Valley circles that have already made fortunes from the AI boom.
