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 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 journey, highlighting a divide between enterprise capitalists and tech executives — a few of whom spent tens of millions of {dollars} backing Trump whereas others poured cash into Harris’ marketing campaign. Either side argued the candidates they help would profit the tech trade.
Field Chief Govt Aaron Levie, who backed Harris and made the case the Democrat is pro-business, congratulated Trump on his win late Tuesday evening. “What’s great about America is that we’re on a rocket ship right now and can keep accelerating with the right policies and execution,” Levie posted on X.
Musk stands to profit from a second Trump presidency. He runs corporations corresponding 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 “government efficiency commission,” sparking considerations about potential conflicts of curiosity. As soon as vital of insurance policies that profit electrical autos, 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 trade:
Synthetic intelligence
Trump plans to repeal President Biden’s 2023 AI govt order, which goals to make sure companies develop expertise responsibly as a result of he thinks it hinders innovation.
“In its place, Republicans support AI Development rooted in Free Speech and Human Flourishing,” based on a doc that outlines insurance policies he helps.
There’ll most likely be some type of AI regulation below Trump, analysts say, however precisely what that may seem like is unclear.
“Knowing what you’re going to be dealing with really matters for the business community,” stated Todd O’Boyle, senior director of expertise coverage with the Chamber of Progress, a tech trade advocacy group. “We are entering really uncharted waters.”
Below Trump, there may very well be “rejuvenated interest” for state AI regulation, he stated.
Trump may make an enormous push into AI innovation, analysts say. As the usage of AI within the navy rises, Trump’s marketing campaign says he would “invest in cutting edge research and advanced technologies” partially to modernize the navy, which might profit tech corporations corresponding 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.
“When it comes to AI, what will rule is, if there’s money to be made, it’ll be supported,” stated Olaf Groth, school member at UC Berkeley’s Haas College of Enterprise and chief govt of assume tank Cambrian Futures.
Trump may additionally punish corporations that cross him.
His marketing campaign has stated he would move a digital invoice of rights and laws to “drastically limit the ability of big social media platforms to restrict free speech.” Trump, who operates his personal his personal social media platform, Reality Social, has been vital 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. Previously, tech titans corresponding 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 trade is “tariffs skeptical.”
“Tariffs are a tax on consumers,” O’Boyle stated. “It’s hard to see how tariffs are going to address the economic challenges in the country. Tariffs slow trade. They create friction to trade.”
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 trade.
A Trump presidency is a “huge 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 govt order in 2022 to crack down on cryptocurrency scams, fraud and theft. The manager 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 trade 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 a reasonable bet that the Trump administration will reverse any fintech and crypto skeptical 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 corresponding to Meta, Amazon and Google, which the U.S. authorities is contemplating breaking apart after a federal choose declared that the search large has an unlawful monopoly on search.
“It’s a very dangerous thing because we want to have great companies,” he stated. “We don’t want China to have these companies. Right now, China is afraid of Google.”
Some tech trade 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 because of the U.S. authorities’s safety considerations with the favored video app’s ties to China. Trump, who has raised free speech considerations about banning TikTok, may be open to permitting the tech platform to remain within the U.S. so it might compete with Google and Meta, analysts say.
“The irony is, even though Trump started the TikTok ban narrative, he’s changed his tune significantly and would actually support TikTok within the U.S. with restrictions, and any talk of a ban would actually dissipate for TikTok,” Ives stated.
In a video posted on social media in September, Trump stated, “We’re not doing anything with TikTok.”