It’s not insane at all. It sucks but it’s completely logical. Musk is just protecting his capital as best he can within a global capitalist system.
No, it’s absolutely insane, and short sighted. You know how much his capital will be in the event of WWIII? We won’t be spending money on overpriced EVs or sending rockets to outer space on scientific missions to study the universe. Assuming he doesn’t get himself assassinated first by people that actually care about democracy. The absolute BEST thing to protect his capital is a strong spending class in the US, which would require the economy to not collapse. You gut social services, there is exactly one logical outcome and it is social unrest followed by either class war or civil war.
So how exactly were you planning on them making money if they don’t take money from Google to be the default search engine and they don’t take money to place advertisements on the default home page?