How Trump’s re-election could impact big tech: Five key predictions
With Donald Trump re-elected as President, the tech landscape in the U.S. is set for a potential shake-up. Here are five ways his second term could impact big tech, based on his past actions and evolving alliances with Silicon Valley power players.
Elon Musk’s influence expands
As Trump’s most high-profile supporter, Elon Musk may stand to gain the most from the new administration. Musk’s social media platform, X (formerly Twitter), has been a megaphone for Trump’s campaign, and rumors suggest that Musk could take on a formal government role, potentially one where he could influence federal regulations.
Such a position could allow Musk to steer policies that impact Tesla, SpaceX, and his AI company, xAI. For Tesla, this might mean more lenient rules around self-driving technologies, a significant regulatory relief as Musk pushes forward with autonomous vehicle plans.
AI development speeds Up
The Trump administration is unlikely to pursue restrictive AI regulations, giving American tech companies the freedom to push the limits of AI development. Several of Trump’s prominent supporters, including venture capitalist Marc Andreessen, favor an “accelerationist” approach to AI, prioritizing rapid progress over regulatory caution. The administration’s light-touch approach to AI could allow U.S. companies to expand their capabilities faster, aiming to stay ahead of international competitors, particularly in China.
Musk’s stance on AI, however, could add some complexity. Although his own company, xAI, would benefit from less regulation, Musk has expressed concern over AI risks and even supported a California bill advocating for AI safety standards. If Musk’s influence grows within the administration, his cautionary view on AI could temper the accelerationist push — or he may leverage Trump’s support to create a safer environment for responsible AI growth.
TikTok survives
During his first term, Trump made headlines by threatening to ban TikTok due to concerns over its Chinese ownership. In recent months, however, he has pivoted, reportedly influenced by lobbying from a major ByteDance investor. Although a law now mandates ByteDance to sell TikTok’s U.S. operations, Trump could choose not to enforce it, allowing TikTok to continue its operations in the U.S. barring any significant changes. This reversal offers ByteDance a lifeline in one of its largest markets, though the outcome still hinges on court rulings and potential legislative action.
Antitrust battles ease – except for Meta
Trump’s administration is expected to clear out the Biden-era antitrust officials, potentially relaxing regulatory pressure on tech giants like Amazon, Google, and Apple. One exception, however, could be Meta. Trump has publicly called out Meta, labeling it a “true enemy of the people.” Consequently, we could see the new president’s administration increasingly target the tech giant with antitrust actions and new regulatory scrutiny.
Big tech CEOs play it safe
Tech leaders have learned that opposing Trump publicly can come with consequences. Amazon’s loss of a $10 billion Pentagon contract in 2020, which it attributed to Trump’s “personal vendetta” against founder Jeff Bezos, left an impression on the industry. This time, the big tech leaders from Meta, Amazon, and Apple are likely to remain cautious and, in many cases, deferential. Executives, even those who have clashed with Trump in the past, may shift towards diplomacy and maintain a low-profile stance to protect their interests.
