‘Headwinds’ for Big Tech Firms That Poured 800 Billion into Trump… Even Republicans Turn Their Backs
Stronger AI Regulations Inevitable Following the Democrats’ Landslide Victory in the U.S. Midterm Elections
Calls for Big Tech Accountability Even Within the Republican Party… Strategy Revisions, Including Recruiting Democratic Figures
[Edaily Reporter Kim Yeong-hwan ] U.S. Big Tech companies, which had sought to expand their political influence by aligning closely with U.S. President Donald Trump, are now facing a fierce backlash following the midterm elections. Despite contributing more than $600 million (approximately 800 billion won) to Republican campaign groups, they now find themselves having to respond to stricter artificial intelligence (AI) regulations after the Democrats secured control of both the House and the Senate. Analysts say it has become inevitable for these companies to reset their relationships with the political sphere, as even within the Republican Party, criticism is mounting that their close ties with Big Tech were a cause of the election defeat. A copy of The Wall Street Journal with a headline declaring the Democrats’ landslide victory in the previous day’s midterm elections is displayed on a newsstand in front of a convenience store in New York City. (Photo: Newsis) According to the UK’s Financial Times (FT) on the 6th (local time), major U.S. AI companies have begun adjusting their strategies to respond to the changing political landscape following the midterm elections, including recruiting figures close to the Democratic Party and expressing a willingness to accept regulations.
Major Silicon Valley tech companies have long maintained friendly relations with the Trump administration, pushing for the relaxation of AI regulations and expanded industry support. In this midterm election, they also sought to secure political influence by contributing more than $600 million to Republican campaign groups, but the results fell short of their expectations.
With the Democrats securing majorities in both the House and Senate, Big Tech companies now face tighter regulations. In particular, within the Republican Party itself, there is a growing sense of accountability, with some arguing that excessive closeness to tech companies has sparked backlash from their traditional base.
Within the Republican Party, calls are growing to distance themselves from figures such as Tesla CEO Elon Musk and NVIDIA CEO Jensen Huang. Critics argue that the party crafted its election strategy to cater to the interests of major AI companies rather than to win over voters.
The Democratic Party is expected to launch a full-scale crackdown on Big Tech companies following the inauguration of the new Congress in January. The party plans to summon executives from major tech firms to testify at congressional hearings and investigate the business activities of figures like Musk, who hold federal government contracts.
Big Tech companies are revising their strategies to expand their ties with the Democratic Party. OpenAI has hired Jessica Schumer, the daughter of Senate Majority Leader Chuck Schumer, while Meta and Palantir have also begun recruiting lobbyists with close ties to the Democratic Party.
Efforts are also emerging to mitigate local opposition to AI infrastructure investments. Some AI companies are discussing the use of the term “computing campus” instead of “data center,” a term that has become associated with negative perceptions. To alleviate concerns about massive power consumption and environmental impact, they are also pledging to support local schools, invest in the power grid, and implement environmental protection measures.
However, observers predict that it will take considerable time to dispel the mistrust held by political circles and civil society. Critics point out that the negative perception formed by the companies’ close ties to the Trump administration is unlikely to change simply through personnel appointments or compliance with regulations.
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