SAN FRANCISCO — On election evening, as Republican Donald Trump inched nearer to reclaiming the U.S. presidency, some tech executives and enterprise capitalists rejoiced.
“The individuals of America gave @realDonaldTrump a crystal clear mandate for change tonight,” Elon Musk posted on his social media platform X, previously often called Twitter.
The eccentric billionaire, who shared a Photoshopped picture of himself carrying a sink into the Oval Workplace, has been a vocal supporter of Trump, who defeated Vice President Kamala Harris to win the White Home.
The 2024 U.S. presidential election has been a wild trip, highlighting a divide between enterprise capitalists and tech executives — a few of whom spent thousands and thousands of {dollars} backing Trump whereas others poured cash into Harris’ marketing campaign. Each side argued the candidates they assist would profit the tech business.
Field Chief Government Aaron Levie, who backed Harris and made the case the Democrat is pro-business, congratulated Trump on his win late Tuesday evening. “What’s nice about America is that we’re on a rocket ship proper now and might preserve accelerating with the correct insurance policies and execution,” Levie posted on X.
Musk stands to learn from a second Trump presidency. He runs firms equivalent to Tesla and SpaceX that maintain billions of {dollars} in authorities contracts, however has additionally clashed with regulators. Trump stated he would make Musk the top of a brand new “authorities effectivity fee,” sparking issues about potential conflicts of curiosity. As soon as important of insurance policies that profit electrical automobiles, Trump softened his tone after Musk endorsed him.
Trump‘s and Harris’ campaigns didn’t reply to requests for remark.
Right here’s how a Trump presidency may reshape the tech business:
Synthetic intelligence
Trump plans to repeal President Biden’s 2023 AI government order, which goals to make sure companies develop know-how responsibly as a result of he thinks it hinders innovation.
“Instead, Republicans assist AI Growth rooted in Free Speech and Human Flourishing,” in accordance with a doc that outlines insurance policies he helps.
There’ll in all probability be some type of AI regulation below Trump, analysts say, however precisely what that may appear like is unclear.
“Figuring out what you’re going to be coping with actually issues for the enterprise neighborhood,” stated Todd O’Boyle, senior director of know-how coverage with the Chamber of Progress, a tech business advocacy group. “We’re coming into actually uncharted waters.”
Below Trump, there might be “rejuvenated curiosity” for state AI regulation, he stated.
In California, lawmakers proposed a slew of AI-related payments this yr and O’Boyle expects that may proceed. Gov. Gavin Newsom vetoed Senate Invoice 1047, a hotly contested invoice that aimed to require builders of superior AI fashions to undertake security measures.
Trump may make a giant push into AI innovation, analysts say. As using AI within the navy rises, Trump’s marketing campaign says he would “spend money on leading edge analysis and superior applied sciences” partially to modernize the navy, which might profit tech companies equivalent to Palantir and Anduril Industries.
Palmer Luckey, who based Anduril Industries and helps Trump, urged his followers on X to “Pokemon Go to the polls.” As Trump moved nearer to victory on election evening, Luckey posted a photograph of Pokémon character Ash Ketchum with a tear (apparently of pleasure) streaming down his face.
“In the case of AI, what is going to rule is, if there’s cash to be made, it’ll be supported,” stated Olaf Groth, school member at UC Berkeley’s Haas Faculty of Enterprise and chief government of suppose tank Cambrian Futures.
Trump may additionally punish firms that cross him.
His marketing campaign has stated he would go a digital invoice of rights and laws to “drastically restrict the flexibility of huge social media platforms to limit free speech.” Trump, who operates his personal his personal social media platform, Fact Social, has been important of Fb’s mum or dad firm Meta Platforms and Google, accusing them of censoring his speech, allegations they deny.
Citing competitors with China, Trump has proposed imposing tariffs so companies prioritize American suppliers. Up to now, tech titans equivalent to Apple that rely closely on China to fabricate merchandise such because the iPhone and the Apple Watch have managed to get tariffs waived.
O’Boyle stated that the tech business is “tariffs skeptical.”
“Tariffs are a tax on shoppers,” O’Boyle stated. “It’s arduous to see how tariffs are going to handle the financial challenges within the nation. Tariffs sluggish commerce. They create friction to commerce.”
Cryptocurrency
A few of Trump’s vocal supporters embrace buyers and twins Cameron and Tyler Winklevoss, who co-founded cryptocurrency trade Gemini, and have accused the Biden administration of making an attempt to destroy their business.
A Trump presidency is a “big win for crypto,” stated Daniel Ives, a managing director at Wedbush Securities.
The Biden administration has proposed tax reporting necessities for cryptocurrency brokers and issued an government order in 2022 to crack down on cryptocurrency scams, fraud and theft. The chief order additionally mentions exploring the creation of a digital U.S. greenback.
In his coverage doc, Trump’s marketing campaign signaled he can be extra pleasant towards the cryptocurrency business and roll again the Biden’s administrations actions. Republicans oppose the creation of a digital U.S. greenback.
“To the extent that the Biden administration was skeptical of fintech and crypto, it’s an affordable guess that the Trump administration will reverse any fintech and crypto skeptical insurance policies that the Biden administration stood up,” O’Boyle stated.
Antitrust and TikTok
U.S. regulators have been making an attempt to rein within the energy of tech heavyweights equivalent to Meta, Amazon and Google, which the U.S. authorities is contemplating breaking apart after a federal choose declared that the search big has an unlawful monopoly on search.
For all his issues in regards to the energy of tech firms, Trump signaled he’s cautious about breaking apart Google. In an October interview moderated by Bloomberg Information, Trump stated he would “do one thing” however stopped wanting saying he would break up the search big.
“It’s a really harmful factor as a result of we wish to have nice firms,” he stated. “We don’t need China to have these firms. Proper now, China is afraid of Google.”
Some tech business observers count on that Trump will identify a brand new Federal Commerce Fee chair, pushing Lina Khan out of the position.
The earlier Trump administration pushed for Chinese language tech firm ByteDance to promote TikTok as a result of U.S. authorities’s safety issues with the favored video app’s ties to China. Trump, who has raised free speech issues about banning TikTok, could be open to permitting the tech platform to remain within the U.S. so it could possibly compete with Google and Meta, analysts say.
“The irony is, although Trump began the TikTok ban narrative, he’s modified his tune considerably and would really assist TikTok inside the U.S. with restrictions, and any speak of a ban would really dissipate for TikTok,” Ives stated.
In a video posted on social media in September, Trump stated, “We’re not doing something with TikTok.”
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