Tech is betting on a former executive in the race for California governor

SACRAMENTO, Calif. — One tech investor called him “the only sane Democrat” in the California gubernatorial race. Others spent millions to boost his campaign, even paying for a Super Bowl ad to introduce him to voters. He is against a proposed billionaires tax that would threaten an exodus of the state’s wealthiest residents.

San Jose Mayor Matt Mahan is tech’s favored candidate to become California’s next leader.

The 43-year-old former technology executive entered the crowded race in January, presenting himself as a pragmatic problem solver. A moderate Democrat, Mahan built his statewide reputation primarily on criticizing Gov. Gavin Newsom and the Legislature’s response to homelessness and crime. His centrist message has appealed to tech executives who want a business-friendly governor to succeed Newsom, a longtime tech ally who is stepping down.

In just three months, Mahan has raised more than any of his rivals, many of whom have been candidates for more than a year. (Billionaire Tom Steyer largely self-finances his campaign.)

During a Tuesday night debate on CNN, he criticized his rivals as career politicians while portraying himself as the candidate offering practical solutions to the state’s challenges.

“We don’t need MAGA values, but we don’t need the same thing either,” Mahan said, referring to President Donald Trump’s “Make America Great Again” movement, supported by Republican rivals Chad Bianco and Steve Hilton, whom Trump has supported.

But Mahan doesn’t yet appear to have achieved the momentum he expected or the name recognition to beat his rivals — and he’s running out of time to win over voters before the June 2 primary. His ties to technology particularly worry unions and some Democratic voters who wonder if he will stand up to the industry.

“People don’t want someone who is a puppet of these big tech billionaires, these AI billionaires — and that’s what he’s always been,” said Lorena Gonzalez Fletcher, president of the California Federation of Labor, which has supported Steyer, former U.S. Rep. Katie Porter and former Los Angeles Mayor Antonio Villaraigosa.

Mahan said he was the only candidate with experience with the giant industry, pointing to a coalition he created in San Jose, where more than 900 public agencies are working together to explore responsible ways to implement artificial intelligence in government. During Tuesday’s debate, he said he supports taxing AI companies to fund workforce development.

“Voters can see beyond the kind of superficial connection, you know, because because I’m the mayor of the biggest city in Silicon Valley, that might mean I’m not willing to regulate technology,” Mahan told the Associated Press. “It’s actually quite the opposite.”

Observers note that California is known for leading the way on policies to both boost and rein in its local tech industry.

“If they can make sure they have a governor in California who is weak on tech accountability, that will save them a lot of money in every state,” JB Branch of Public Citizen, a progressive consumer rights group, said of Silicon Valley executives backing Mahan.

Politically, the tech industry is flexing its political muscle as public skepticism of social media and artificial intelligence increases. Independent groups backed by tech companies and billionaires have already committed at least $40 million to influence California’s congressional elections.

Political committees supporting Mahan have raised more than $25 million, including donations from Google co-founder Sergey Brin, venture capitalist Michael Moritz and Reddit CEO Steve Huffman.

Some donors, like Joe Lonsdale, co-founder of Brin and Palantir, are hedging their bets — they also donated to Hilton, the former Fox News host.

Mahan “is focused on actually solving the problems — building more housing, improving public safety and getting people to live and work here again,” Garry Tan, who runs a startup accelerator that has helped launch companies like Airbnb and DoorDash, said through a spokesperson.

A Harvard graduate, Mahan was classmates with Meta CEO Mark Zuckerberg, who he says persuaded him to go into tech instead of law school.

Mahan was part of the team that created an early Facebook app called Causes, which allowed users to promote nonprofit organizations. He later co-founded Brigade, a nonpartisan online voter network.

But that’s not the center of Mahan’s campaign. Instead, he focuses on his upbringing as the son of a postal worker and a school teacher. He is the only major Democrat who wants to suspend the state’s gas tax.

He beat a Labor-backed candidate for mayor in 2022 after serving two years on the city council. As mayor, he convinced council members to direct more city money toward short-term housing to get homeless people off the streets and made them eligible for arrest for refusing shelters. Both efforts have faced stiff opposition, but San Jose saw a decline last year in the number of people without access to shelters, according to county data.

He stood up to Newsom in 2024 by supporting a tough-on-crime ballot measure. Mahan has since toned down his criticism, saying the governor focused on the right issues.

Mahan has pledged not to raise taxes to plug budget holes – including imposing a one-time tax on billionaires that most of his rivals are also opposed to. He wants to encourage elected officials and state appointees by tying future pay increases to improvements on issues like the unemployment rate and homelessness.

“Raising taxes isn’t always the answer, Tom,” he said Tuesday when Steyer presented a plan to force businesses to pay more in property taxes.

Mahan raised more than $13 million in 11 weeks, allowing him to launch television ads to reach voters in some of the country’s most expensive markets. Two independent spending groups spent more than $18 million to strengthen it.

Last month, only about 730 donations to Mahan’s campaign were under $250, indicating limited popular support. In contrast, almost all of Porter’s 46,000 donations were below that amount, as were about 5,600 of those given to former state Attorney General Xavier Becerra.

Still, voter support for other Democratic candidates “is very low,” Mahan said of his chance. “Even if people lean a certain way, they’re still persuasive.”

Tech moguls’ support for Mahan’s candidacy and his regulatory plans were among the most popular topics during a recent “Ask Me Anything” session that Mahan hosted on Reddit, where people can ask questions anonymously.

Several people asked when Mahan would drop out to avoid a doomsday scenario for Democrats where two Republicans could advance to the November election. One asked which Democrat he would support after leaving the race.

“I intend to win!” he replied.