Trump and Big Tech’s Partnership: John Thornhill in the Financial Times talks about the similarities between the Russian oligarchs who gained immense wealth in the 1990s and the current situation with tech billionaires like Elon Musk, Mark Zuckerberg, and Jeff Bezos. Musk, for example, has made a huge profit on the $250 million he invested to help re-elect Donald Trump.
After Trump won, the stock value of Musk’s company, Tesla, increased by more than $300 billion. Musk, Zuckerberg, and Bezos also have a lot of influence, with Musk owning Twitter (now called X), Zuckerberg owning Facebook, and Bezos owning The Washington Post.
Trump’s Executive Order on Prescription Drugs: How Will It Affect Your Medicare Plan?
Tech Billionaires’ Power and Economic Influence
The Economist argues that these tech billionaires are not as powerful as people think. Amazon, Meta (Facebook), and Tesla make up 10% of the value of all US-listed stocks, but they only contribute 1.8% to the US economy. This is much less powerful than the few oligarchs in Russia who controlled much of the country’s economy in the early 2000s.
In Hungary, some people close to the country’s leader Viktor Orban control 20-30% of the economy. The Economist also points out that public opinion matters and some groups, like supporters of the MAGA movement, already dislike the tech billionaires. Also unlike past business leaders like John D. Rockefeller, who controlled essential resources, these tech billionaires can’t completely control the US economy.
Even though the risk of an oligarchy in the US is low, there is still a danger that businesses will focus too much on building political connections instead of being efficient. According to Money Week, Filipe Campante and Raymond Fisman in The New York Times warn that when power becomes too concentrated in the hands of a few, it makes it harder for the government to be accountable, and the quality of governance suffers.
Jeremy Warner in The Telegraph points out that since Donald Trump became president, there has been a close relationship between politics and business, especially with the three richest men in the world Musk, Bezos, and Zuckerberg.
Donald Trump welcomes competent immigrants amid H-1B visa debate
Warner compares this situation to the post war military- industrial complex under President Dwight Eisenhower. Joe Biden also warned that the growing concentration of wealth and power in a few hands could threaten America’s democracy and rights.
Trump Revokes Biden’s AI Risk Reduction Order
Trump has shown his intentions by revoking a 2023 executive order from Biden that tried to reduce the risks of artificial intelligence (AI). The day after his inauguration, Trump announced Stargate, a $500 billion private investment in AI infrastructure.
This project, a joint venture with OpenAI, Oracle, Japan’s SoftBank, and a tech investment arm of the UAE government, will create around 100,000 jobs in the next four years. This boom in AI has led to a huge demand for data centers, power, and water.
Trump is not just helping big tech companies for no reason, Warner says. For Trump, these tech giants are a way to secure his place in history. He wants to push back against China’s rise and solidify America’s position as the world’s top superpower. Strengthening the US lead in AI, space, robotics, bioscience, and weaponry is central to his goals.
