As Donald Trump gears up for his second term as President of the United States, the tech industry is bracing for a series of significant regulatory shifts. The landscape has changed dramatically since Trump’s first presidency, evolving from a period of relative collaboration to an era of increased scrutiny and skepticism. During his previous term, Trump initiated landmark antitrust cases and questioned the growing influence of tech giants. Now, with the industry more cautious, many CEOs are opting for a strategy of public neutrality while continuing to lobby behind the scenes. However, certain key figures, like Tesla’s Elon Musk, have chosen a different approach, openly aligning with Trump to secure a stronger foothold in shaping future policies.
Trump’s Approach to AI: A Move Towards Deregulation
Under the Biden administration, artificial intelligence (AI) regulation focused heavily on establishing guardrails to prevent discriminatory outcomes. Biden’s executive order on AI aimed to standardize testing, promote transparency, and ensure that AI applications did not exacerbate existing biases in areas such as housing or criminal justice. In contrast, Trump’s approach is expected to prioritize rapid technological advancement over stringent safeguards. He has promised to roll back Biden’s AI policies, potentially leading to a less regulated environment where innovation could accelerate, albeit at the risk of heightened societal concerns about bias and fairness.
Elon Musk, who has emerged as a key player in AI discussions, could play a substantial role in influencing Trump’s AI policy. Musk, the founder of xAI and a vocal critic of leading AI companies like OpenAI, has previously called for a moratorium on major AI developments, citing existential risks. While his concerns about the long-term dangers of AI align with broader safety discussions, Musk’s focus on these issues has drawn criticism for diverting attention away from more immediate problems, such as discriminatory AI applications. With Trump’s likely support, Musk may have an opportunity to steer AI policy in a direction that benefits his vision and business interests.
Shifting Antitrust Policies: Favoring Allies Over Principles
Trump’s approach to antitrust regulation has historically been inconsistent, often influenced by personal grievances rather than a coherent policy framework. During his first term, Trump initiated antitrust investigations into major tech companies like Google, Meta, and Amazon, challenging their market dominance. However, his admiration for influential industry figures like Musk complicates the picture. While Trump has criticized tech monopolies publicly, his willingness to engage and support prominent allies suggests that antitrust enforcement may become selective, potentially favoring smaller tech firms backed by Trump’s political supporters.
For instance, venture capitalists like Andreessen Horowitz, who have shown strong support for Trump, may see their portfolio companies benefit from a more favorable regulatory environment. This shift could lead to a landscape where large tech firms face ongoing legal battles, while emerging players receive a boost, reshaping the competitive dynamics of the industry.
The Uncertain Future of TikTok Under Trump
TikTok’s status in the U.S. remains a contentious issue, with Trump’s stance on the popular social media app evolving significantly. Initially, Trump pushed for a ban on TikTok, citing national security concerns and the app’s ties to Chinese parent company ByteDance. However, in recent statements, Trump has opposed a ban, arguing that it would primarily benefit Meta, a rival social media giant. This shift reportedly came after discussions with Jeff Yass, a Republican donor with significant investments in ByteDance.
A recent court ruling may force ByteDance to divest TikTok by January, but Trump’s influence could delay this process. He has the option to extend the divestiture timeline or negotiate terms that could alter TikTok’s operations in the U.S. Ultimately, the app’s future hinges on ongoing legal battles and Trump’s shifting perspective, leaving its millions of American users in a state of uncertainty.
Musk’s Expanding Influence Over Federal Policy
Elon Musk’s relationship with Trump has deepened in recent years, potentially positioning him as a key advisor in the next administration. Trump has hinted at giving Musk a role focused on enhancing government efficiency, which could grant the billionaire significant power over regulatory agencies that impact his businesses. This expanded influence would likely extend across sectors where Musk has vested interests, including electric vehicles, satellite internet, and artificial intelligence.
Musk’s involvement in federal policy decisions could shape the direction of initiatives like the Broadband Equity, Access, and Deployment (BEAD) program, which currently favors fiber broadband over satellite solutions like Starlink. Given Musk’s criticism of the program as wasteful, his potential advisory role could lead to policy shifts that favor satellite internet providers, aligning with his business goals.
Content Moderation and Free Speech: A Push for Fewer Restrictions
Trump’s stance on social media regulation is expected to lean heavily towards reducing content moderation, a shift that aligns with conservative complaints about censorship. Throughout his first term, Trump and his allies accused platforms like Facebook and Twitter of suppressing conservative speech. This narrative has persisted, and Trump’s second term may see legislative efforts to alter Section 230, the legal framework that shields tech companies from liability for user-generated content.
If successful, changes to Section 230 could give the government more leverage over content moderation decisions, potentially reducing restrictions on misinformation. Platforms like X (formerly Twitter), under Musk’s leadership, may experience fewer constraints on content, amplifying concerns about the spread of false information and its impact on public discourse.