While San Jose Mayor Matt Mahan fell short despite support from wealthy technology donors, Silicon Valley advocates are pointing to victories in legislative and local races as evidence their political movement is gaining momentum, setting up a larger battle over California's political future.
Back in March, Y Combinator CEO Garry Tan launched a new political nonprofit called Garry's List, a play on Emily's List, which is a prochoice PAC that helps elect Democratic women to office. Tan's organization aims to support what he calls "common sense" centrist candidates and policies, part of a broader effort by Silicon Valley leaders to play a more active role in California politics.
But one of the movement's highestprofile investments failed to gain traction statewide. Despite a boost to the tune of more than $33 million from Silicon Valley donors and PACs, Mahan finished sixth in the crowded race for governor.
In the South Bay, Democratic Congressman Ro Khanna cruised to reelection despite opposition from Silicon Valley donors who backed his Democratic challenger, entrepreneur Ethan Agarwal.
"People don't want to be told by tech billionaires who their representatives are. They're tired of it," Khanna told ABC7 after winning more than 62% of the vote.
"I think that sometimes these tech leaders just think, let us raise a lot of money and pour that money in, and that does not work," he said. "People look at who is going to improve their lives."
When asked about the struggles of selffunded gubernatorial candidates like Tom Steyer, whom Khanna supported, the congressman suggested voters are increasingly wary of large sums of money in politics.
MORE: San Jose Mayor Matt Mahan joins crowded race for California governor
"People do not like big money," he said.
But Silicon Valley leaders view the election through a different lens.
In a statement to ABC7, Tan argued that focusing solely on statewide races overlooks gains made by candidates aligned with his movement.
"The big picture is that centrists scored big victories," Tan said. "The story of this primary is that the pragmatic center is gaining ground."
Tan pointed to victories by candidates his organization supported, including Stephen Sherrill for San Francisco supervisor and state Sen. Scott Wiener in the hotly contested race to replace Speaker Emerita Nancy Pelosi in Congress. He also highlighted the defeat of San Francisco's proposed CEO tax measure, Prop D.
"There is a growing constituency for candidates who are prohousing, propublic safety, proeducation, and focused on results," Tan said. "That is a significant step forward for the pragmatic center in California."
Political observers say both sides have evidence to support their claims.
"They (tech) put a lot of money into two campaigns that were not going well anyway," said Dan Schnur, a political professor at U.C. Berkeley. "They did accomplish a significant number of victories in legislative races around the state."
MORE: Silicon Valley entrepreneur Ethan Agarwal launches challenge to Rep. Ro Khanna
Donna Crane, a senior lecturer at San Jose State University and longtime political strategist, said voter attitudes toward the tech industry may also be shaping election outcomes.
"We do not have great data on all the nuances of how voters decide, ultimately, to pull the lever," Crane said. "There is a lot of skepticism of tech, money and tech moving into the realm of politics and becoming more and more powerful."
For progressives like Khanna, that skepticism reflects broader frustration with economic inequality and the growing influence of billionaires.
"They do not understand the anger and the pain and the frustration of ordinary Americans," Khanna said.
Still, analysts caution against declaring a clear winner in the debate over Silicon Valley's political power.
"All in all, primary day was a mixed bag for technology donors," Schnur said.
The next test may be even bigger.
MORE: California billionaire tax proposal is slated to qualify for the November ballot
A proposed onetime 5% billionaire tax has qualified for California's November ballot, setting the stage for what could become one of the state's most expensive and closely watched political fights.
Supporters, including Khanna, argue the measure would help address widening inequality and ensure the wealthiest Californians pay a greater share toward public services, like healthcare.
Opponents warn it could deepen divisions and damage California's economic competitiveness.
"Punitive tax measures may wake a sleeping giant, but they do not solve California's problems, they deepen divisions," said Alex Tourk, principal at Ground Floor Public Affairs. "We need collaborative solutions that support a healthy business climate, fund vital services, and create economic opportunity and mobility for workers. These goals should not be mutually exclusive."
Political strategist Shaudi Fulp said the primary results suggest a shift away from oneoff campaign spending and toward longterm coalition building.
"The June primary marked a shift from transactional politics to longterm coalition building," Fulp said. "The lesson is that lasting change comes not from winning a single campaign, but from building a governing coalition that can deliver results over time."
As the wealth tax battle ramps up, both supporters and opponents are preparing for a fight that could offer the clearest answer yet about how much political influence Silicon Valley truly has in California.