In Silicon Valley, Psychedelics Aren’t Just for Recreational Use Anymore

Summary

Summary of WSJ Tech News Briefing Episode: "In Silicon Valley, Psychedelics Aren’t Just for Recreational Use Anymore"

Release Date: June 4, 2025

The Wall Street Journal's "Tech News Briefing" dives deep into the evolving landscape of Silicon Valley, where psychedelics are transitioning from recreational substances to tools for professional development. Additionally, the briefing explores the ongoing tech rivalry between the United States and China, particularly focusing on the impact of trade restrictions on the global tech race.

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1. Psychedelics in Silicon Valley: From Recreation to Professional Development

Introduction to the Trend

Victoria Craig opens the episode by highlighting a significant shift in Silicon Valley’s culture. Traditionally known for its innovative spirit, the tech hub is now embracing psychedelics not just for entertainment but as a means to enhance productivity, creativity, and personal growth.

Integration Therapy: Bridging Psychedelic Experiences and Professional Life

Angel Au Young, WSJ reporter, provides an in-depth look into psychedelic integration therapy—a service gaining traction among tech workers seeking to process their psychedelic experiences. These therapy sessions are designed to help individuals make sense of the emotions and thoughts that arise during psychedelic usage, whether from retreats like those in Costa Rica or informal gatherings.

“Psychedelic integration therapy sessions come into play after a client has taken psychedelics... needing help with processing various thoughts and emotions that came up.” (02:12)

Unregulated Practices and Methods

Angel describes the current state of integration therapy as the "wild west," with varying approaches and limited formal regulation. Therapists typically employ traditional therapy techniques, such as guided imagery, to help clients revisit and discuss their psychedelic experiences in a sober setting.

“These therapists... use some classic therapy tools, such as taking their clients back to their drug trips while they're in a sober state.” (02:30)

Corporate Involvement and Off-Site Retreats

Christopher Mims, WSJ tech columnist, points out that the integration of psychedelics is not only a personal endeavor but also supported by tech companies aiming to enhance their workforce's creativity and address burnout. Companies facilitate unofficial off-site retreats, where employees participate in psychedelic experiences and subsequently engage with integration therapists to process their insights.

“There are examples of executives going on these retreat centers on their own time and coming back... and we'll hire a coach or a therapist to basically process what came up.” (04:13)

Potential Risks and Downsides

While the trend offers benefits, Angel cautions about the inherent risks associated with unregulated psychedelic use. Negative outcomes, such as psychotic breaks, underscore the necessity for professional guidance and careful consideration before engaging in such practices.

“These are drugs that remain unregulated and remain illegal in many parts of the US... There are definitely real risks to taking these substances.” (05:19)

Silicon Valley Mythos and Personal Fulfillment

The integration of psychedelics is also tied to a broader narrative within Silicon Valley, where tech professionals seek deeper meaning and fulfillment beyond their work. This quest often leads to reevaluating their career paths and personal goals post-experience.

“It really has become a part of the Silicon Valley myth where tech workers... say, I don't really want to work in tech anymore.” (05:55)

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2. The US-China Tech Rivalry: Escalation and Implications

Trade Restrictions and Their Efficacy

After a brief interlude, Victoria Craig transitions to the geopolitical arena, focusing on the tech race between the US and China. Christopher Mims examines the effectiveness of the Trump administration's trade restrictions aimed at hindering China's progress in artificial intelligence (AI).

“The latest evidence shows that export restrictions on Nvidia to send less powerful chips to China hasn't really dented the company's revenue yet.” (07:59)

China’s Response and Technological Advancement

An industry expert discusses China's strategic response to US export restrictions, emphasizing China's efforts to bolster its domestic chip manufacturing capabilities. Since 2018, following the ban on Chinese telecom giant ZTE, China has accelerated its own chip development, leading to significant advancements.

“China has been on a tear, building up its domestic capacity to fabricate high end chips... companies like Huawei to continue to make some of the most advanced AI supercomputers in the world.” (07:59)

Historical Context: ZTE and Policy Shifts

The expert traces the roots of the current tech standoff back to 2018 when export restrictions were imposed on ZTE, a move that catalyzed China's push for technological self-sufficiency. This policy shift forced Chinese companies to innovate rapidly to overcome dependencies on US technology.

“The Trump administration... banned the purchase of ZTE's equipment and banned the use of American high end chips in ZTE's equipment.” (09:52)

Prospects of a New Cold War

The discussion delves into whether the US-China tech rivalry constitutes a "new cold war." The expert acknowledges the complexity of the relationship, noting that while economic interdependence exists, strategic competition continues to drive policies that could entrench divisions further.

“If you accept the premise that we're in a new cold war with China, then it does make sense that US trade policy toward China should shift.” (11:18)

Long-Term Implications for Global Tech Industries

Christopher Mims and the industry expert explore the long-term consequences of persistent export restrictions. Historically, such measures have often led China to achieve technological parity or supremacy in targeted sectors, potentially undermining American tech dominance in the long run.

“China is world leader in producing steel... there’s every reason to believe that history will repeat itself.” (13:12)

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Concluding Insights

The episode underscores a pivotal moment in Silicon Valley, where the integration of psychedelics into professional life reflects broader searches for meaning and enhanced productivity. Simultaneously, the intensified tech rivalry between the US and China highlights strategic vulnerabilities and the unpredictable outcomes of prolonged economic and technological competition.

“We may have to just double down on export restrictions because strategically there's just no other option at this point.” (12:48)

As Silicon Valley navigates these internal and external challenges, the balance between innovation, regulation, and global competition will shape the future trajectory of the tech industry.

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Notable Quotes:

• “These are drugs that remain unregulated and remain illegal in many parts of the US.” — Angel Au Young (05:19)
• “China has been on a tear, building up its domestic capacity to fabricate high end chips.” — Industry Expert (07:59)
• “We may have to just double down on export restrictions because strategically there's just no other option at this point.” — Industry Expert (12:48)

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This comprehensive overview encapsulates the key discussions from the episode, providing listeners and readers alike with a clear understanding of the transformative trends within Silicon Valley and the critical dynamics of the US-China tech rivalry.

Transcript

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[Victoria Craig]

Welcome to Tech News briefing. It's Wednesday, June 4th. I'm Victoria Craig for the Wall Street Journal. Silicon Valley has long dabbled in the use of psychedelics. Our reporter tells us how its uses have gone from recreational to professional. Then the Trump administration' trade restrictions on China are designed to hobble the country's ability to continue marching forward in the global tech race. But our columnist writes, that plan isn't working. But first, as we grow in our careers, most of us strive to become more efficient, unlock our full potential, maybe even find meaning in what we do. In Silicon Valley, tech workers are turning to psychedelics to aid in that process. It's a world in which such drugs have long been used for pure entertainment, but have increasingly thrown techies into existential crisis. Enter integration therapists. WSJ reporter Angel Au Young has been reporting on this growing trend. Angel first tell us what integration therapy sessions are and how they work.

[Angel Au Young]

Psychedelic integration therapy sessions come into play after a client has taken psychedelics, whether it's traveling to an ayahuasca retreat in Costa Rica or doing psychedelics in their friend's backyard. And they come out of drug trip basically needing help with processing various thoughts and emotions that came up. And this is something that I heard from therapists has become a more and more requested service from their clients in the Bay Area. How these sessions work, it's still the wild wild west when it comes to how it's actually conducted. There are a Couple certificate programs that exist around the world. But these therapists, they use some classic therapy tools, such as taking their clients back to their drug trips while they're in a sober state, whether that's through guided imagery or other tools and just asking the clients to remember what were the specific thoughts or emotions that came up when you were on the drug and just talking through that experience, their feelings afterwards and potential action items that they want to do after the experience.

[Christopher Mims]

And as you point out, this is really a burgeoning industry in the Bay Area, mostly used by tech workers, but interestingly, interestingly sanctioned by the companies they work for. So what really is the overall goal? Is it just working through some of these feelings and finding out what they really mean?

[Angel Au Young]

There was one therapist that I interviewed who told me that they had been hired by startups, and the goal could be making sure that the workers are able to process the feelings and thoughts that came up during their drug trips. Another reason could be to quote, unquote, reawaken creativity in the office. Another reason was to address burnout amongst the workforce.

[Victoria Craig]

You also write that some companies will hire these coaches after their workers have psychedelic gatherings off site. How does that all work?

[Angel Au Young]

So these off sites are, quote, unquote, unofficial off sites. You know, one of the therapists told me that there are examples of executives going on these retreat centers on their own time and coming back basically telling his or her peers. This was an incredible experience. I think we as a team should do these off sites together unofficially. So the way that it was described to me was it's not like an official off site that the company will send an email about, but more unofficial word of mouth. If you're interested in these experiences, you can join in and we will go to Mexico or another country that's somewhat close to the us, Somewhat close to SF Bay Area, and we'll do these retreats and. And we'll come back and we'll hire a coach or a therapist to basically process what came up.

[Christopher Mims]

But not everybody, as you write, comes away from these experiences with a revelatory outcome. What are some of the downsides of this kind of coaching experience, I suppose we can call it.

[Angel Au Young]

It's obviously not an experience that should be for everyone. At the end of the day. These are drugs that remain unregulated and remain illegal in many parts of the US and there are examples of people who take these drugs and come back thinking that they had a psychotic break. That's one example that a therapist had told me from one of their clients who did work in tech, and that's why they basically started seeking out therapy, both from a regular therapist who did not offer psychedelic integration and then with a therapist that I interviewed who does offer psychedelic integration. So there are definitely real risks to taking these substances, and it depends on whether you see this as a risk or not. But it really has become a part of the Silicon Valley myth where tech workers, founders, VCs will take these drugs and come back and say, I don't really want to work in tech anymore. I don't really find meaning in this work and I want to do something else.

[Victoria Craig]

That was WSJ reporter Angel Au Young. Coming up, if tech is the new cold war, which side is winning? And are President Trump's tariff policies helping the American side? That story after the break.

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[Victoria Craig]

The US And China have for years been locked in a new age tech race. The latest focus is on artificial intelligence and the US has blocked China from accessing the most advanced American made chips, all in the hope of chok the world's second biggest economy to advance in this area. But is it working? WSJ tech columnist Christopher Mims has written about that very question. Christopher, let's look first at chips because the latest evidence shows that export restrictions on Nvidia to send less powerful chips to China hasn't really dented the company's revenue yet. China has plenty of other sources, so how do they stack up against the American chip giant?

[Industry Expert]

So China has been cut off not just from US high end chips for AI, like from Nvidia and amd, but also from the tools and in some cases even the chemicals and other materials required to build the latest generation of their own AI chips. And so really since about 2018, China has been on a tear, building up its domestic capacity to fabricate high end chips and build everything else in that whole really complicated supply chain, which of course starts with silicon, literally sand, but includes so many other things in order to create the most advanced chips. They haven't been able to replace everything in that supply chain from domestic sources, but they're kind of on the path. And there's been a lot of interesting innovation. China's largest chip manufacturer, smic, which is their answer to tsmc, the Taiwanese chip manufacturer which makes chips for Apple, has basically enhanced older chip making technology so it can make newer kinds of chips. And this has allowed companies like Huawei to continue to make some of the most advanced AI supercomputers in the world. And even the CEO of Nvidia has said Huawei's latest AI supercomputer is comparable to or better than the ones made by Nvidia.

[Christopher Mims]

And let's talk about how we got to this place, because you write that the big turning point was in 2018 when then Commerce Secretary Wilbur Ross cut off Chinese telecom giant ZTE from US Tech. And that, as you write, forced Chinese companies to suddenly spend and innovate at a much faster so starting in 2018.

[Industry Expert]

The Trump administration got really worried that Chinese telecom giant ZTE was winning deals to build out the especially 5G telecom infrastructure of the world because they were concerned that just as the United States has done to its own citizens, ZTE would be able to build back doors into that equipment which would allow the Chinese state to spy on telecoms all over the world, Internet, voice, etc, so they took steps to ban the purchase of ZTE's equipment and ban the use of American high end chips in ZTE's equipment by banning its export. And that basically took out this growing Chinese telecoms giant. And it puts on alert every Chinese tech company and the Chinese government that the US could kneecap any Chinese tech company at will because of their dependencies on United States tech hardware and software. And it really accelerated this push for China to build and source all of its high tech domestically.

[Christopher Mims]

And there's this idea in some circles that this is a so called new cold war between the US and China to develop this technology, to really dominate this field. Is that true? And what happens next?

[Industry Expert]

I'm not a geopolitics expert, so I can't say whether we're in a new cold war with China. But if you accept the premise that we're in a new cold war with China, then it does make sense that US trade policy toward China should shift. There's always been this tension between the folks who want to engage and keep America and China connected because the idea being countries that are interdependent economically are less likely to go to war. The other side of that is People say, well, we've spent decades being engaged with China in terms of technology, and all we got from that was every time that new tech or equipment was shipped to China, it got reverse engineered and copied. And then the Chinese state supported its development in a way that allowed China to flood the global market with copies of that technology, which could then destroy the domestic industry that had originally been copied. So it's not clear what we should be doing. Some of the experts that I talked to said we may be in a situation now where we're trapped. We have already made it clear to China that any dependency on US Tech can and will be used against Chinese companies and China as a whole, the Chinese government. And so we may have to just double down on export restrictions because strategically there's just no other option at this point.

[Christopher Mims]

I want to play out the tape on that thought just a little bit here because if these export restrictions do what President Trump intends hurt the Chinese tech industry, will that be a problem for China or will it sort of make that industry scrappy, scrappier and allow it to find ways around US tech titans that in the long run hurt American players more?

[Industry Expert]

The pattern has been in the past 20 years, anytime that the US tries to hobble Chinese type through export restrictions, China responds by figuring out how to make that tech domestically and eventually attains a level of mastery where China ends up making better stuff than anybody else in the world. So that's been true with solar panels, electric vehicles, and it's even true with raw materials and various inputs. China is world leader in producing steel. China has gotten extraordinarily good at extracting and refining so called rare earth elements and critical minerals that the rest of the world needs to make its energy transition and to make its weapons and computers. So there's every reason to believe that history will repeat itself.

[Victoria Craig]

That was WSJ tech columnist Christopher Mims. And that's it for Tech News Briefing. Today's show was produced by Julie Chang with supervising producer Melanie Roy. I'm Victoria Craig for the Wall Street Journal. We'll be back this afternoon with TNB Tech Minute. Thanks for listen.