At first, it was just Musk and Ellison who made the move. Now, Google's co-founders, Page and Sergey, along with venture capital heavyweights like Peter Thiel, are also opting to leave California. The reasons behind this exodus are the changing political landscape in the state and the introduction of a tax targeting the ultra-wealthy. California is contemplating imposing a one-time 5% wealth tax on the ultra-affluent. The aim is to foster social equality and bridge the yawning wealth gap. However, this proposal has ignited a firestorm of controversy. Regardless of whether it will be enacted in the end, the ultra-wealthy have already started to relocate their assets and residences as a precautionary measure.

In late December 2025, Google co-founder Larry Page shifted his core business entities out of California. He transferred his family office and investment vehicles to Delaware. Simultaneously, he established new primary registered addresses in Florida, Nevada, and Texas. Tech investor Peter Thiel also acted swiftly. Since 2020, he has primarily made Miami his home. In 2021, his venture capital firm, Founders Fund, opened an office there. Critics contend that this mass departure will result in an outflow of capital and innovation capabilities, which, in the long run, will inflict significant damage on California's economy.