London Daily

Focus on the big picture.
Sunday, Jul 19, 2026

Now Oracle's exiting California for Texas. Will the last one in Silicon Valley, please turn out the lights?

Now Oracle's exiting California for Texas. Will the last one in Silicon Valley, please turn out the lights?

Oracle, part of the S&P 100 with 138,000 employees, was founded 43 years ago in Silicon Valley

If the outbound migration from Silicon Valley to Texas continues at its current clip, we may soon see a sign on southbound Highway 101 “Will the Last One in Silicon Valley, Please Turn Out the Lights?” (although California’s frequent blackouts might render the sign redundant).

Just 11 days after Hewlett Packard Enterprise, part of the firm that created Silicon Valley in 1939, announced it was moving its headquarters from San Jose, California to Houston, Texas, Oracle announced that its headquarters had moved to Austin, Texas from Redwood City, California.

Oracle, part of the S&P 100 with 138,000 employees, was founded 43 years ago in Silicon Valley. It’s not yet known if Larry Ellison, Oracle’s co-founder, Executive Chairman and Chief Technical Officer, is moving to Texas.

Of note, Ellison is the second-largest investor in Elon Musk’s Tesla.

Musk announced a personal move out of California to Texas a few days ago. Musk has frequently clashed with California politicians and bureaucrats during the past year over 1COVID1-19 restrictions and stifling governmental overreach, likening the state to a sports franchise that won for so long it has now forgotten what it takes to win.

California’s increasingly burdensome regulatory climate has driven Elon Musk’s Tesla to build a gigafactory in Texas outside of Austin. Within weeks of the announcement, the new plant was under construction.

In California, it would have taken five years just to navigate the environmental lawsuits — most of which are merely used as tools to extract concessions for union labor and other entrenched California special interests.

California has the nation’s highest income tax rate, 13.3 percent, and businesses save, on average, 32 percent of their operating costs by moving from California to Texas.

Some Texans took aim at Gov. Greg Abbott, who announced Oracle’s move on Twitter on Friday, Dec. 11. They’re worried that an influx of more Californians, assumed to be liberal, would turn Texas blue.

Last year, the Census Bureau estimated that about 560,000 people moved into Texas from other states while about 453,000 moved out. About 82,000 of those new Texans arrived from California. The Oracle move will add to a tiny fraction of the annual migration to Texas.

The fact is that thousands of small family businesses move to Texas every year from California, though few of them ever get any notice from the national media. They are mostly run by conservatives fed up with California’s high taxes and crushing regulatory burden.

Polling in Texas consistently shows that new arrivals are more conservative than native-born Texans. At least so far.

Even if Texans actually wanted to turn Californians away, there’s no legal way to do it. That is unless Texas were to adopt the same destructive policies that California has, such as expanding government, raising taxes, and dramatically increasing arbitrary regulatory enforcement.

Ellison himself has given to politicians of both major parties and gave some $4 million to a PAC supporting Florida Republican Sen. Marco Rubio’s 2016 presidential bid. This year, he hosted a fundraiser for President Trump at his Rancho Mirage estate in California.

A few weeks ago, Joe Lonsdale, another Silicon Valley entrepreneur (Palantir and Addepar) and venture capitalist with a $3.6 billion fund, moved to Austin.

Writing in the Wall Street Journal on Nov. 15, Lonsdale cited, among other issues, a non-responsive government caused by “California’s intolerant far-left” politicians, electric blackouts, and a breakdown in public safety as reasons for his move out of the Golden State.

I couldn’t agree more. After working in California’s aerospace industry for 13 years, then serving six years as a conservative Republican California State Assemblyman until I termed out, I packed up and moved to Texas nine years ago. By the time I left in 2011, most of the aerospace giants for whom I consulted had packed up and left, as well.

California Democrats enjoy two-thirds supermajorities in each legislative house and every statewide elected office.

They own California politics. And they’d rather curse the darkness, the overhead light isn’t working, due to a blackout, following the departure of Oracle, Hewlett Packard Enterprise, Musk, and Lonsdale than light the candle of reform.

Newsletter

Related Articles

0:00
0:00
Close
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Singapore Considers Lower Taxes for Fund Managers as Hong Kong Intensifies Talent Contest
US Retaliates Against Iran After Two American Troops Killed in Jordan
Bank of Asia BVI Enters Court-Supervised Liquidation After Regulators Find It Insolvent
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Brothers Andrew and Tristan Tate Who Turned "Toxic Masculinity" Into a Brand Arrested in Miami as Britain Seeks Their Extradition
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
Gold and Cash Seizure Puts Indonesia’s Senior Anti-Corruption Prosecutor Under Investigation
The Ledger Will Not Trust on Faith
Bank of England Warns Climate Shocks Could Trigger Sudden Asset Repricing
UK Treasury Places Microsoft, Google, AWS and Oracle Under New Financial Resilience Rules
Scottish Government Faces Pressure Over Delays in Vulnerable Group Background Checks
Crown Prosecution Service Authorises Additional Charges Against Andrew and Tristan Tate
NHS Approves At-Home Cancer Treatments for Rare Blood Disorders
Bank of England Gains Oversight of Major Cloud Providers Supporting UK Financial System
UK Government Plans Major Overhaul of English Local Councils Through New Unitary Authorities
British Steel Nationalisation Dispute Escalates as Chinese Owner Jingye Seeks Compensation
Bank of England Signals Interest Rates Will Stay High as It Warns of Financial Risks From Climate and AI
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
Key Trends to Watch
Financial Conduct Authority Warns Cloud and Digital Risks Are Becoming a Financial Priority
Jeffrey Donaldson Appeals Sexual Abuse Conviction as Democratic Unionist Party Opens Review
Welsh Health Authorities Launch Emergency Meningitis Vaccination Programme for Students
Scottish Business Activity Falls for Third Month as Companies Face Rising Costs
Bank of England Regulators Demand Better Access to Digital Banking Services
United Kingdom Cuts Bilateral Aid to Several African Countries by Up to Ninety Per Cent
United Kingdom Introduces Tougher Deportation Rules After Rochdale Exploitation Scandal
NHS England Launches Wearable Technology Plan to Reduce Sepsis Deaths
Amazon Web Services Billing Error Sends Trillion-Dollar Invoices to British Companies
Bank of England Takes Direct Regulatory Role Over Major Global Cloud Providers
Extreme Summer Heat Drives Record Fire Risk and Rising Deaths Across Britain
United Kingdom Nationalisation of British Steel Sparks Diplomatic Dispute With China
United Kingdom Economy Shows Weak Growth Ahead of Major Autumn Budget
Andy Burnham Set to Become United Kingdom Prime Minister After Labour Leadership Victory
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
Energy Risk, Uneven Growth and the New Geography of Global Capital
×