California's proposed Billionaire Tax Act, which would impose a 5% tax on the worldwide assets of residents with net worths exceeding $1 billion beginning January 1, 2026, has led to contrasting decisions among Silicon Valley's most influential figures. One of the earliest and most notable moves came from Larry Page, co-founder of Alphabet Inc., who has repositioned both his family office and key business entities outside of California to avoid the tax's implications. Meanwhile, Nvidia's CEO Jensen Huang has openly expressed his willingness to remain anchored in California, emphasizing the importance of talent and innovation over tax considerations.
Page, currently ranked as the second richest individual globally with an estimated net worth of $276 billion according to Bloomberg's Billionaires Index, undertook substantial steps to mitigate exposure to the potential tax. Business documents reviewed indicate that Page's family office, known as Koop, transitioned from a California-based entity to one incorporated in Delaware in late December, ahead of the January 1, 2026, deadline. Additionally, it has been reported that Page has physically exited California.
The proposed tax if enacted would apply retroactively to any individual residing in California as of January 1, 2026, subjecting them to a 5% levy on their entire global asset holdings. Remaining within the state past the cutoff date could result in billions of dollars in tax obligations for a billionaire of Page's stature.
Distinct from Page's strategy, Nvidia's chief executive Jensen Huang has indicated no intention to relocate or alter his residency status due to the tax proposal. In a recent discussion with Bloomberg, Huang dismissed concerns about the financial implications of the tax. He emphasized that Silicon Valley's concentration of skilled professionals is fundamental to Nvidia's operations and growth, prioritizing access to talent over any tax-related disadvantages.
"We work in Silicon Valley because that’s where the talent pool is," Huang stated. When questioned if the proposed tax was a source of concern, he replied, "It never crossed my mind once. Whatever taxes I guess they would like to apply, so be it. I'm perfectly fine with it."
This divergence in responses marks a critical moment, illustrating starkly different approaches to California's evolving fiscal landscape.
Beyond the family office's shift in corporate registration, other entities linked to Page have similarly migrated to tax-favorable jurisdictions. The influenza research initiative, Flu Lab LLC, now lists its main office in Nevada. Meanwhile, One Aero, a financial vehicle supporting flying car initiatives, has established its base in Florida, and Dynatomics, an artificial intelligence startup, now identifies Keller, Texas, as its location.
These relocations reflect a broader pattern of dispersal of operations potentially aimed at minimizing tax exposures in light of California’s legislative proposals.
The billionaire tax initiative, designed to generate increased funding for healthcare and education programs, has encountered criticism from prominent business leaders concerned about its impact on the state's innovation economy. Venture capitalist Vinod Khosla posted on X, warning that the tax could result in greater losses by driving away top taxpayers. Additionally, San Jose Mayor Matt Mahan described the proposal as a political maneuver threatening California’s stature as an innovation hub.
With high-profile figures like Larry Page joining the list of influential individuals departing California—including Peter Thiel and Elon Musk—the state faces an uncertain calculus regarding the long-term retention of its entrepreneurial talent and capital. As the November vote approaches, attention will focus on whether more tech executives will elect to relocate to avoid the tax, potentially altering the economic landscape of Silicon Valley.
The ongoing debate frames a broader discussion on balancing revenue generation through taxation with maintaining a competitive environment conducive to innovation and growth within California. The outcomes will have significant ramifications for companies, investors, and policymakers alike.
Page, currently ranked as the second richest individual globally with an estimated net worth of $276 billion according to Bloomberg's Billionaires Index, undertook substantial steps to mitigate exposure to the potential tax. Business documents reviewed indicate that Page's family office, known as Koop, transitioned from a California-based entity to one incorporated in Delaware in late December, ahead of the January 1, 2026, deadline. Additionally, it has been reported that Page has physically exited California.
The proposed tax if enacted would apply retroactively to any individual residing in California as of January 1, 2026, subjecting them to a 5% levy on their entire global asset holdings. Remaining within the state past the cutoff date could result in billions of dollars in tax obligations for a billionaire of Page's stature.
Distinct from Page's strategy, Nvidia's chief executive Jensen Huang has indicated no intention to relocate or alter his residency status due to the tax proposal. In a recent discussion with Bloomberg, Huang dismissed concerns about the financial implications of the tax. He emphasized that Silicon Valley's concentration of skilled professionals is fundamental to Nvidia's operations and growth, prioritizing access to talent over any tax-related disadvantages.
"We work in Silicon Valley because that’s where the talent pool is," Huang stated. When questioned if the proposed tax was a source of concern, he replied, "It never crossed my mind once. Whatever taxes I guess they would like to apply, so be it. I'm perfectly fine with it."
This divergence in responses marks a critical moment, illustrating starkly different approaches to California's evolving fiscal landscape.
Beyond the family office's shift in corporate registration, other entities linked to Page have similarly migrated to tax-favorable jurisdictions. The influenza research initiative, Flu Lab LLC, now lists its main office in Nevada. Meanwhile, One Aero, a financial vehicle supporting flying car initiatives, has established its base in Florida, and Dynatomics, an artificial intelligence startup, now identifies Keller, Texas, as its location.
These relocations reflect a broader pattern of dispersal of operations potentially aimed at minimizing tax exposures in light of California’s legislative proposals.
The billionaire tax initiative, designed to generate increased funding for healthcare and education programs, has encountered criticism from prominent business leaders concerned about its impact on the state's innovation economy. Venture capitalist Vinod Khosla posted on X, warning that the tax could result in greater losses by driving away top taxpayers. Additionally, San Jose Mayor Matt Mahan described the proposal as a political maneuver threatening California’s stature as an innovation hub.
With high-profile figures like Larry Page joining the list of influential individuals departing California—including Peter Thiel and Elon Musk—the state faces an uncertain calculus regarding the long-term retention of its entrepreneurial talent and capital. As the November vote approaches, attention will focus on whether more tech executives will elect to relocate to avoid the tax, potentially altering the economic landscape of Silicon Valley.
The ongoing debate frames a broader discussion on balancing revenue generation through taxation with maintaining a competitive environment conducive to innovation and growth within California. The outcomes will have significant ramifications for companies, investors, and policymakers alike.