From TechCrunch · Dominic-Madori Davis · · 3m
Big Tech pivots toward Democrats after midterm shift
Silicon Valley's biggest companies are rebuilding ties with Democrats after backing Trump, but experts question whether the effort will work.
In brief
Silicon Valley's biggest companies are rebuilding ties with Democrats after backing Trump, but experts question whether the effort will work. Tech companies that aligned with Trump are now courting Democrats after midterm gains, though policy fights will likely happen in state capitals rather than Washington…
OpenAI hires Schumer's daughter
Right before the midterm elections, OpenAI hired Jessica Schumer, daughter of Democratic Senator Chuck Schumer. The company also rebranded its data centers as compute campuses.
Two years of Trump alignment
For the past two years, Silicon Valley's biggest names built closer ties with President Donald Trump.Several attended White House events, some scaled back diversity programs, and executives donated millions to super PACs supporting his campaign.
Trump administration benefited tech
Administration policies benefited the industry through tax breaks, pausing federal investigations, and looser AI regulation. Meanwhile, Meta faced lawsuits and billion-dollar fines, and OpenAI faced suits alleging its technology harmed users.
Democrats pledge tighter oversight
With the midterms shifting the balance of power in Washington, tech companies are working to rebuild ties with Democrats, who have pledged to tighten oversight of AI.
Experts call moves PR washing
J.B. Branch, director of federal AI governance at Public Citizen, told TechCrunch the tech industry realizes they have an optics problem. He characterized moves like the Schumer hire and rebranding as PR washing.
“PR washing”
Corporate partnerships as strategy
Branch expects more image-polishing through corporate partnerships. OpenAI partnered with the American Federation of Teachers, Anthropic launched Claude Corps, and Meta created America's Workforce Academy.
Meta says work with elected government
Meta President Dina Powell McCormick said at WSJ Tech this week: You have to work with the government that the American people elect. She emphasized the need to be bipartisan.
“You have to work with the government that the American people elect”
Skeptics doubt the pivot works
Alice Marwick, director of research at Data and Society, expects Big Tech to pivot toward the middle or left.But she said it's too late, and companies should ask how their products make people's lives better.
“it's a little too late”
State capitals, not Washington
Aryan Ranjan, founder of Baraza political software, said most action will happen at the state level since states have already sued tech companies and passed regulations. Data center moratoriums are gaining traction.
Trump's fortunes tied to AI boom
J.B. Branch argued that Trump's political fortunes are now tied to the AI industry. On Wednesday, a trillion-dollar market sell-off spooked investors. Branch predicted a possible market collapse on Trump's hands.
“There's a very strong likelihood that there will be an AI bubble pop, and it'll happen on Trump's hands”
Rules depend on location, not Washington
For the next two years, a company's AI rules may depend more on where it operates rather than on anything Washington passes, according to Ranjan. State-level regulation will likely dominate.
What matters most
Tech companies that aligned with Trump are now courting Democrats after midterm gains, though policy fights will likely happen in state capitals rather than Washington.
