Big Tech Secures Key AI and Chip Wins During Trump Era
Prior to President Trump’s return to the White House in January, the leading figures of the tech industry made significant efforts to gain his favor through inauguration donations and visits to Mar-a-Lago. Upon taking office, Trump vowed to persist in the battle to dismantle Meta, imposed tariffs that would increase the costs of Apple’s supply chains, and restricted the exports of artificial intelligence chips from Nvidia and other chip manufacturers. The tech industry’s attempts to win over the president appeared to be in vain. Now, however, the largest technology firms have secured nearly all their demands from Trump. Since the summer, he has removed numerous restrictions on AI chip exports, expedited the construction of data centers that drive AI advancement, and advocated for legislation that granted government approval to a specific type of cryptocurrency. This month, Trump signed an executive order to eliminate AI restrictions imposed by states and approved the sale of a more powerful Nvidia chip to America’s leading competitor, China. “The conservative party stands for the free market and not picking winners and losers,” said Isabel Sunderland. “Yet what we’ve seen so far in the Trump administration is an administration that has picked the tech industry to win in ways that is contrary to his own base.” Assiduously courted by tech companies and their leaders, Trump has effectively cemented his relationship with the wealthiest and most powerful US industry into a mutually beneficial alliance. The duration of this entente remains uncertain, given Trump’s unpredictable nature. However, this evolution may have significant implications for rapidly advancing technologies such as AI and has already introduced new issues that are expected to influence the upcoming midterm elections next year.
Trump has leveraged backing from tech companies to advance his ambition of establishing US dominance in AI and cryptocurrency, all while achieving successes for his America First economic agenda. This year, Amazon, Apple, Google, Meta, Nvidia, OpenAI, and Oracle revealed a collective investment of $1.4 trillion in domestic data centers and manufacturing initiatives, as reported. Trump has effectively cemented his relationship with the wealthiest and most powerful US industry into a mutually beneficial alliance, having been assiduously courted by tech companies and their leaders. The duration of this entente remains uncertain, given Trump’s unpredictable nature. However, this evolution may have significant implications for rapidly advancing technologies such as AI and has already introduced new challenges that are expected to influence the upcoming midterm elections next year. For Silicon Valley, the partnership with Trump has resulted in a significant windfall. Released from the threat of regulation and supported by favorable industry policies, Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla have experienced a significant rise in their stock prices. Bitcoin, the leading cryptocurrency, reached unprecedented heights. Tech companies are able to advance AI development with minimal restrictions. However, the relationship has also created a rift within the right, splitting Republican lawmakers and attracting criticism from conservative think tanks and populist figures such as Steve Bannon, a former adviser to Trump. Trump has allowed tech billionaires to operate unchecked within his administration, they stated, facilitating policies that disproportionately benefit the industry while neglecting the needs of other Americans who lack technological protections.
“The conservative party stands for the free market and not picking winners and losers,” said Isabel Sunderland. “Yet what we’ve seen so far in the Trump administration is an administration that has picked the tech industry to win in ways that is contrary to his own base. Big Tech is not a natural ally to our coalition,” stated Wes Hodges. “Our work is to keep the memory of Big Tech and their unique concentration of power that is a threat against conservatives.” Liz Huston stated, “Trump’s relationship with the tech industry would help America prosper.” She said “President Trump is leveraging his close relationships with private-sector titans to cement American technological dominance for the rest of the 21st century.” The tech industry’s gains this year have come as a result of a persistent lobbying effort by the companies. When Elon Musk, the head of Tesla and SpaceX, departed from his advisory role in the Trump administration in May, other tech companies recognized an opportunity. David Sacks, a venture capitalist serving as the White House’s AI and crypto czar, along with other Silicon Valley insiders, facilitated access for executives such as Nvidia’s Jensen Huang to engage in direct lobbying with the president. Other tech companies openly supported Trump’s initiatives, with Amazon, Meta, Google, Palantir, and Coinbase contributing to the campaign to transform the White House’s East Wing into a ballroom. “We’re seeing an industry that knows how to work the president,” stated Jessica González. The thriving relationship was apparent in September during a White House dinner for technology leaders. In a gathering with Meta’s Mark Zuckerberg and Microsoft co-founder Bill Gates, Trump stated that the executives were “leading a revolution in business” and referred to them as “the most brilliant people.” In response, Sam Altman, OpenAI’s chief executive, commended Trump for being a “pro-business” president. Sundar Pichai, Google’s chief executive, praised Trump for his “leadership” on AI, while Tim Cook, Apple’s chief executive, expressed gratitude to the president for “setting the tone” for domestic manufacturing.
As Trump developed a closer relationship with the tech industry, certain Republicans expressed concerns regarding the implications of this relationship for matters such as AI safety for children, the impact of AI on employment, and the rise of energy-consuming data centers that support AI. In July, Republicans decisively opposed a provision in a congressional spending package aimed at preventing states from regulating AI. This provision was introduced by Senator Ted Cruz and received support from Sacks, who played a role in bringing the idea back to the forefront through the executive order signed by Trump this month. Gov. Ron DeSantis of Florida, a Republican, criticized the initiatives aimed at preventing states from enacting their own AI regulations. “We have a right to do this,” he stated following the signing of the executive order. Lawmakers, among them Representative Marjorie Taylor Greene, a Republican from Georgia, intensified their criticism. “States must retain the right to regulate and make laws on AI and anything else for the benefit of their state,” she posted on social media last month. “Federalism must be preserved.” In a November poll conducted by the Institute for Family Studies, a right-leaning think tank, 57 percent of American voters — including 43 percent of those identifying as Trump voters — expressed opposition to federal efforts aimed at blocking state laws on AI. Across various regions of the nation, the policies implemented by Trump to promote the construction of data centers have sparked significant controversy. Meta, Amazon, Microsoft, and others have embarked on an extensive expansion of large computing facilities, which are known to consume significant amounts of energy and water, and have faced criticism for contributing to rising utility bills for consumers. Last month, two Democrats secured seats on the Georgia Public Service Commission, the body responsible for overseeing the state’s electric utility, campaigning on a platform focused on affordability in light of the surge in data centers. In Port Washington, Wis., three residents were taken into custody this month for their involvement in a protest against a $15 billion data center initiative by OpenAI and Oracle. Residents expressed concerns that the project may result in significant tax breaks for the tech companies and monopolize supplies of fresh water.
“There are lots of long-term costs for residents,” stated Michael Beaster. There are concerns that Trump’s partnership with the tech industry may eclipse important issues regarding the impact of AI on child safety and freedom of speech. Parents have filed lawsuits against OpenAI and other AI companies, claiming that their children, who died by suicide, developed unhealthy relationships with AI chatbots. “It should not be at odds to say we are pro-American AI and also need to protect kids,” said Evan Swarztrauber. Lori Schott recently joined a group of parents advocating on Capitol Hill for legislation aimed at ensuring child safety on social media and in the realm of artificial intelligence. Her daughter, Annalee, took her own life at age 18, leaving behind journals that reveal her struggle with exposure to toxic social media content. Ms. Schott remarked that “grass roots” Republicans like herself were facing challenges in reconciling the Trump administration’s overt friendliness with tech executives. “Our votes will reflect a party that puts kids’ safety first,” she stated.
