Many
donated money to President Trump’s favored causes and became his allies. Now
that political alignment may be a liability.
The New York Times, Eli Tan, Theodore Schleifer and Erin Griffith, Nov. 5, 2026
President Trump met with leaders of the artificial intelligence industry
at the White House in September.Credit...Doug Mills/The New York Times
In
September, President Trump hosted a White House luncheon to discuss artificial
intelligence, flanked by some of the world’s wealthiest tech executives: Jensen
Huang of Nvidia, Elon Musk of Tesla and SpaceX, Mark Zuckerberg of Meta and
others. They had the president’s ear to pitch an A.I. future uninhibited by
regulation or guardrails.
For two
years, it had been that easy to get what they wanted. Tech billionaires and
their companies donated money to Mr. Trump’s favored causes, including the
White House ballroom. The moguls posed for photos and lavished him with praise
and gifts. Amazon heavily promoted a movie about Melania Trump.
Then on
Tuesday, the American public delivered a rebuke of the tech industry’s agenda.
Overnight, the billionaires’ political alignment with the president may have
become a liability.
Democrats,
riding a wave of anti-tech sentiment, including distrust of tech leaders,
opposition to data centers and fears of job loss fueled by A.I., will soon
control Congress and prominent state governments. In victory speeches around
the country, they made tech titans avatars of inequality and corruption that
plagued the Republican Party in the election cycle.
That puts
some tech executives in a trickier position. It may be harder for them to make
progress on their goals of A.I. dominance. Many saw their net worths drop on
Thursday as investors sold out of A.I. and chip stocks, driving the tech-heavy
Nasdaq down more than 5 percent. And some may even find themselves under
investigation.
“You guys
aren’t the actual leaders of the Valley. You’re the mis-leaders of the Valley,”
said Reid Hoffman, a founder of LinkedIn who is one of the country’s top
Democratic donors and a leader of the tech industry’s progressive wing. “It
will no longer be that these MAGA voices in the Valley are in charge.”
Silicon
Valley’s shift to the right began in 2024, when Mr. Musk and others went all-in
on Mr. Trump, visiting Mar-a-Lago and taking up powerful positions in his
administration. New political groups supporting niche interests like
cryptocurrency spent enormous sums to promote their agendas.
Guests at Mr. Trump’s inauguration last year included, from right in the front row,
Elon Musk, Sundar Pichai, Jeff Bezos, Lauren Sánchez Bezos and Mark
Zuckerberg. Credit...Ricky Carioti
This time,
the money was even bigger. Among the 20 biggest donors in the mid terms were tech billionaires, including the venture capitalists Marc Andreessen and Ben
Horowitz.
An
Andreessen-backed cryptocurrency group, Fairshake, spent tens of millions on a
mission to defeat Sherrod Brown, the Democrat running for Senate in Ohio. Mr.
Musk poured over $474 million into Republican super PACs, including hundreds of
millions to support Ken Paxton, the Texas Republican nominee for the Senate.
And a Musk-endorsed billionaire ran for governor in Ohio.
Mr. Musk’s
results, said Rohan Patel, a former Tesla vice president reporting to Mr. Musk
who now works in Democratic politics, are a “total repudiation of his ugly
brand of politics.”
Neil
Malhotra, a professor of political economy at Stanford’s Graduate School of
Business, said tech leaders had mostly been acting out of self-preservation.
“They
understand when you have a president who is willing to use the state to
intervene in the economy, it’s smart business practice to be on good terms with
the administration,” he said.
Dr.
Malhotra noted that most business leaders would rather that the government not
move too far from the center in either direction. After the 2024 election,
“Republicans overinterpreted their mandate,” he said.
Now, tech
leaders may find their business dealings under investigation. “They are going
to need to plant new forests for all of the subpoenas we’ll be printing,”
Senator Edward J. Markey, Democrat of Massachusetts, posted on social media on
Tuesday.
The tech
titans appeared triumphant in one race: A proposed billionaire tax in California is on the cusp of being defeated. Sergey Brin, a co-founder of
Google, and other tech investors and founders poured about $330 million into
efforts to vanquish the measure, which called for a one-time 5 percent tax. A
companion measure that would effectively ban all future wealth taxes also
appeared likely to pass.
Still,
anti-billionaire and anti-tech sentiment was prominent in victory speeches
around the country. Mr. Paxton’s opponent in Texas, James Talarico, whom Mr.
Hoffman backed with nearly $17 million, compared his race to David versus
Goliath.
“We just
sent a message to every billionaire megadonor, every trillionaire megadonor,”
he said. He called out “the billionaires who own the social media algorithms,
who own the cable news networks, who own the politicians.” This election was a
referendum on their power, too, he said.
Roy Cooper,
a Democrat who won a Senate seat in North Carolina, said in his victory speech
on Tuesday that “we told Washington loud and clear that North Carolinians will
always matter more than the billionaires and the insiders.”
The
left-wing victor in Michigan’s Senate race, Dr. Abdul El-Sayed, said he would
be “taking on the corporations and the billionaires, special interests who’ve
rigged the system against us for far too long.”
And Senator
Jon Ossoff, a Democrat who won re-election in Georgia, called out “the titans
of Silicon Valley,” who “dig bunkers for themselves and warn that the
artificial intelligence they’re creating risks human extinction.”
Senator Jon Ossoff, Democrat of Georgia, called out “the titans of Silicon
Valley” while speaking on election night at an Atlanta hotel. Credit...Nicole Craine
for The New York Times
Late
Tuesday, as the results of the election rolled in, the hosts of the tech
podcast “All-In,” who are tech investors, expressed surprise and disappointment
in a livestream at the possibility that Texas’ Republican governor, Greg
Abbott, could lose his bid for a fourth term.
The tech
industry had assumed that after Mr. Abbott won, he would lift a moratorium on
data centers in Texas and that construction would begin again, the “All-In”
hosts said. Pro-business Texas is the second-largest state for data center
projects, representing roughly 30 percent of the planned capacity for 2028,
according to SemiAnalysis, a research group.
Gina
Hinojosa, the Democrat who beat Mr. Abbott, has said she would keep the
moratorium going until the state could pass legislation around data centers,
delaying projects from coming online for many months.
Gina Hinojosa and James Talarico campaigning in San Antonio on Sunday.
Credit...Tamir Kalifa for The New York Times
Chamath
Palihapitiya, an “All-In” host, connected the slowdown or halt of data center
projects to the performance of A.I.-related stocks and, ultimately, the fate of
the U.S. economy. He warned of a recession, noting that losing the computing
power of new data centers was the “single most effective way to tank the
market.”
Mr. Musk,
who donated $5 million to Mr. Abbott’s campaign, posted on social media after
the results: “Data centers in space looking pretty appealing right now.”
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