Tech billionaires back Trump in power struggle over us regulations

Amid high tax demands and the political ambitions of the technology sector, Washington is becoming a hostage. The high-tech industry accounts for about 10% of the US GDP and one-third of the value of the S&P 500 index.

In other words, the workings of tech companies are no longer just Silicon Valley’s business; they’re America’s business, highlights Fortune magazine.

Main donors from Silicon Valley support Trump, and the influence of billionaires using their fortunes and media clout to build political positions is growing rapidly, notes "The New York Times."

Entrepreneurs involved in cryptocurrencies generate nearly half of the corporate donations that, through so-called super PACs, have fueled the 2024 election campaign. The entire technology sector is becoming one of the key political sponsors in the US. Their leaders wish to have as much influence in Washington and state congresses as they have gained on Wall Street, explains "The New Yorker."

A super PAC is a political committee that does not directly donate funds to a candidate's campaign but invests them in it. One of the most important committees in the technology sector is Fairshake, which revealed in February that it raised $170 million for the 2024 elections.

Historically, Silicon Valley has been a bastion of Democrats and liberals. Attempts by Congress and the administration to regulate the activities of giants like Meta, Google, and Apple, as well as regulations concerning technology and cryptocurrencies, have shifted the stance of local barons. "The Washington Post" highlights Elon Musk, whose companies benefit from government contracts but whose decisions are shaped by personal ambitions.

"The Financial Times" suggests that Musk supports Trump as part of a business strategy. The British newspaper writes that Musk, the owner of Tesla, SpaceX, xAI, and X, aspires to shape humanity's future.

During the campaign, leaders like Google's Sundar Pichai and Meta's Mark Zuckerberg maintain neutrality. Meanwhile, Musk, with his ostentatious style, attracts media attention.

The Biden administration has undertaken oversight of technology firms' practices, mainly focusing on cryptocurrencies, following the spectacular collapse of FTX in 2022. "The New Yorker" explains that the SEC fears a new speculative bubble.

The prospect of strict regulations prompted technological leaders to back Trump, who promises less regulation and lower taxes. The former president has managed to attract them by giving speeches at Bitcoin conferences and promising to make the US a "Bitcoin superpower."

Democrats oppose excessive deregulation. Senator Elizabeth Warren compares the situation to the banking sector before the crisis.

Bill Kristol, a known neoconservative, warns on the Bulwark portal about "new oligarchs" controlling the Republican Party for their own benefits. The role of Elon Musk, the most prominent billionaire, becomes crucial due to his media influence, recalls "The Washington Post."

"FT" notes that tech giants hope the Trump administration will not fight their monopolies or increase their taxes.