While Elon Musk is known for his roles at Tesla and SpaceX, he’s now making waves in government as co-leader of the Department of Government Efficiency (DOGE). As an unpaid special government employee serving for 130 days or less, Musk aims to cut $500 billion from the federal government’s annual $6.7 trillion budget.
DOGE’s main strategy involves using artificial intelligence to review federal spending. The program feeds sensitive government data into Microsoft’s Azure cloud computing platform to analyze grants, contracts, and employee expenses. The AI system specifically targets areas like DEI (diversity, equity, and inclusion) initiatives for potential cuts. The recent development of a custom AI chatbot for the GSA demonstrates DOGE’s commitment to technological innovation. Research utilizing the CausalImpact R package revealed that his social media posts generate 95% credible intervals for predicted market impacts.
The department’s name isn’t coincidental – it references Dogecoin, a cryptocurrency Musk frequently promotes on social media. Research shows his tweets about Dogecoin typically lead to a 33% average price increase. During Musk’s DOGE involvement, the cryptocurrency reached its highest value in more than three years. The cryptocurrency employs Scrypt algorithm for its mining operations, distinguishing it from Bitcoin’s approach.
The initiative has expanded across multiple federal agencies, including the Departments of Education and Health and Human Services. However, this expansion has sparked numerous concerns. Labor unions report that workforce cuts disproportionately affect marginalized groups, while privacy advocates worry about the AI system’s access to the Treasury Department’s payment system.
Several lawsuits have been filed alleging unlawful access to U.S. taxpayers’ private data. Critics also point to potential conflicts of interest between Musk’s government role and his private business interests. The AI implementation raises additional concerns about data leaks, cyberattacks, and processing errors.
Agency staff report feeling pressured to grant access to sensitive financial and personnel data. While DOGE continues its cost-cutting mission, questions persist about the program’s impact on federal workers and data security.
Musk regularly uses social media to promote DOGE’s efforts, particularly regarding cuts to DEI contracts, but this communication strategy has drawn scrutiny for potentially influencing cryptocurrency markets while serving in a government role.
