{"id":379754,"date":"2025-01-23T18:04:38","date_gmt":"2025-01-23T18:04:38","guid":{"rendered":"https:\/\/www.techopedia.com\/?p=379754"},"modified":"2025-01-23T18:04:38","modified_gmt":"2025-01-23T18:04:38","slug":"trump-2-0-first-tech-moves","status":"publish","type":"post","link":"https:\/\/www.techopedia.com\/trump-2-0-first-tech-moves","title":{"rendered":"Trump 2.0 First Tech Moves: Innovation or Big Tech Oligarchy?"},"content":{"rendered":"<p>It has not taken long for the technology world to be shaken up following President Donald Trump&#8217;s return to office.<\/p>\n<p>From his <a href=\"https:\/\/www.techopedia.com\/trump-revokes-ai-risks-legislation-what-the-experts-say\">decision to repeal the AI safety legislation<\/a> to a bold $500 billion AI infrastructure project Stargate, TikTok controversy, and Big Tech oligarchy concerns, we look more broadly at the latest maneuvers and announcements in the tech world and their implications for the US and global tech sector.<\/p>\n<div class=\"su-note\"  style=\"border-color:#e5e54c;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#FFFF66;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">\n<h2><span id=\"key_takeaways\">Key Takeaways<\/span><\/h2>\n<ul>\n<li>A new AI venture could see some of the world&#8217;s biggest companies contribute $500 billion over the next four years.<\/li>\n<li>Views differ on whether it is an important step for American innovation or a dangerous resource consolidation.<\/li>\n<li>The TikTok saga continues following a 75-day stay of execution. Rumors suggest this could result in a sale to Elon Musk.<\/li>\n<li>Many have called Trump&#8217;s new inner circle a tech oligarchy. Is that an accurate depiction?<\/li>\n<\/ul>\n<\/div><\/div>\n<div>\n    <section class=\"toc-sticky w-100 bg-white \">\n        <div class=\"toc-sticky__container container\">\n            <div class=\"toc-sticky__open d-flex align-items-end\" data-bs-toggle=\"collapse\"\n                 aria-controls=\"multiCollapse1\"\n                 data-bs-target=\"#multiCollapse1\">\n                <button\n                        class=\"btn btn-primary collapse-action-btn p-1 rounded-circle\"\n                        type=\"button\"\n                >\n                    <i class=\"icon-chevron-up\"><\/i>\n                <\/button>\n                <span id=\"toc-current-title\" class=\"d-flex align-items-center\">\n                    Table of Contents\n                <\/span>\n                <span class=\"toc-main-title-permanent\">Table of Contents<\/span>\n            <\/div>\n            <div\n                    class=\"collapse my-3\"\n                    id=\"multiCollapse1\"\n            >\n                <ol class=\"StepProgress\">\n                                                                        <li class=\"StepProgress-item current\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"key_takeaways\"\n                               onclick=handleScrollToTitle(\"key_takeaways\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Key Takeaways<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"500_billion_ai_project_stargate_takes_shape\"\n                               onclick=handleScrollToTitle(\"500_billion_ai_project_stargate_takes_shape\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">$500 Billion AI Project: Stargate Takes Shape<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"tiktok_acquisition_rumors_who_is_the_savior\"\n                               onclick=handleScrollToTitle(\"tiktok_acquisition_rumors_who_is_the_savior\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">TikTok Acquisition Rumors: Who Is the Savior?<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"tech_oligarchy_or_progress_trumps_bold_bet\"\n                               onclick=handleScrollToTitle(\"tech_oligarchy_or_progress_trumps_bold_bet\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Tech Oligarchy or Progress? Trump's Bold Bet<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"the_bottom_line\"\n                               onclick=handleScrollToTitle(\"the_bottom_line\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">The Bottom Line<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"faqs\"\n                               onclick=handleScrollToTitle(\"faqs\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">FAQs<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"references\"\n                               onclick=handleScrollToTitle(\"references\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">References<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                    <\/ol>\n                <div class=\"toc-sticky__container__disperse\"><\/div>\n                <div class=\"toc-sticky__btn-top justify-content-center\">\n                    <button class=\"btn btn-link d-flex align-items-center\" onclick={btnTop()}><p>Show Full Guide<\/p><img decoding=\"async\"\n                                src=\"\/wp-content\/plugins\/table-of-contents\/assets\/images\/arrow-up-circle.svg\"\n                                alt=\"arrow-up-circle\">\n                    <\/button>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/section>\n    <div class=\"toc-sticky-list\">\n        <div class=\"toc-sticky__container container\">\n            <div class=\"toc-sticky__open d-flex align-items-end\" data-bs-toggle=\"collapse\" aria-controls=\"multiCollapse2\" data-bs-target=\"#multiCollapse2\">\n                <button class=\"btn btn-primary collapse-action-btn p-1 rounded-circle\"\n                        type=\"button\">\n                    <i class=\"icon-chevron-up up\"><\/i>\n                <\/button>\n                <span id=\"toc-current-title\" class=\"d-flex align-items-center\">\n                    Table of Contents\n                <\/span>\n            <\/div>\n            <div  class=\"collapse my-3\" id=\"multiCollapse2\">\n                <ol class=\"StepProgress\">\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item current \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"key_takeaways\"\n                                   onclick=handleScrollToTitle(\"key_takeaways\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Key Takeaways<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"500_billion_ai_project_stargate_takes_shape\"\n                                   onclick=handleScrollToTitle(\"500_billion_ai_project_stargate_takes_shape\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">$500 Billion AI Project: Stargate Takes Shape<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"tiktok_acquisition_rumors_who_is_the_savior\"\n                                   onclick=handleScrollToTitle(\"tiktok_acquisition_rumors_who_is_the_savior\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">TikTok Acquisition Rumors: Who Is the Savior?<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t\n\t\t\t\t\t\t <span class=\"show_moretoc\">Show Full Guide<\/span>\n\t\t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"tech_oligarchy_or_progress_trumps_bold_bet\"\n                                   onclick=handleScrollToTitle(\"tech_oligarchy_or_progress_trumps_bold_bet\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Tech Oligarchy or Progress? Trump's Bold Bet<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"the_bottom_line\"\n                                   onclick=handleScrollToTitle(\"the_bottom_line\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">The Bottom Line<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"faqs\"\n                                   onclick=handleScrollToTitle(\"faqs\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">FAQs<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"references\"\n                                   onclick=handleScrollToTitle(\"references\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">References<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                                    <\/ol>\n            <\/div>\n            <div class=\"toc-sticky__container__disperse\"><\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n<script id=\"toc-js\">\n    window.addEventListener(\"DOMContentLoaded\", () => {\n        const header = document.querySelector(\".header_wrapper\");\n\n        const pageLegend = document.querySelector('#multiCollapse1');\n        const pageLegendList = document.querySelector('#multiCollapse2');\n        const pageLegendCollapse = new bootstrap.Collapse(pageLegend, {toggle: document.querySelector(\".toc-sticky\").classList.contains('sticky')});\n\n        \/**\n         * Changing current title\n         *\/\n        (function (pageLegend) {\n            const titleNodes = pageLegend.querySelectorAll('.StepProgress-item__link');\n\n            if (!titleNodes.length) return;\n\n            const titles = [...titleNodes].map((itm, i) => ({\n                id: itm.getAttribute('data-id'),\n                text: itm.textContent,\n                level: itm.getAttribute('data-level'),\n                linkNode: itm,\n                titleNode: document.getElementById(itm.getAttribute('data-id')),\n                index: i,\n            }));\n\n            \/**\n             * Source: https:\/\/www.sitepoint.com\/throttle-scroll-events\/\n             * @param {Function} fn\n             * @param {number} wait\n             * @returns {(function(): void)|*}\n             *\/\n            const throttle = (fn, wait) => {\n                let time = Date.now();\n                return function () {\n                    if ((time + wait - Date.now()) < 0) {\n                        fn();\n                        time = Date.now();\n                    }\n                }\n            }\n\n            const changeCurrentTitle = () => {\n                const documentScrollTop = window.pageYOffset || document.documentElement.scrollTop || document.body.scrollTop || 0;\n                let current = 0;\n\n                \/\/ Title\n                titles.forEach((itm, i) => {\n\t\t\t\t\/\/console.log(itm)\n                    const itmOffsetTop = itm.titleNode ? 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-30 : -15;\n        window.scrollTo({\n            top: el.offsetTop - 60 - headerHeightDifference - 10,\n        });\n    }\n<\/script>\n\n<h2><span id=\"500_billion_ai_project_stargate_takes_shape\">$500 Billion AI Project: Stargate Takes Shape<\/span><\/h2>\n<p>Earlier this week, an assortment of the biggest names in tech backed a new <strong>$500 billion AI infrastructure project<\/strong> the US President Trump announced at a White House ceremony on Tuesday.<\/p>\n<p>The joint venture, known as Stargate, is spearheaded by <a href=\"https:\/\/www.techopedia.com\/who-owns-openai\">OpenAI<\/a> and investor <strong>SoftBank Group<\/strong>, with additional funding coming from <strong>Oracle and MGX<\/strong>, a UAE-backed investor.<\/p>\n<div class=\"su-note\"  style=\"border-color:#e5e54c;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#FFFF66;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">\n<p>The sums involved include a <strong>$100 billion commitment <\/strong>to the venture, with plans for this to increase to<strong> $500 billion over the next four years<\/strong>. It&#8217;s been reported that the<strong> first Stargate data center will be in Texas<\/strong>, operated by Oracle and used by OpenAI.<br \/>\n<\/div><\/div>\n<p><iframe title=\"Trump announces $500 billion AI infrastructure project\" width=\"580\" height=\"326\" src=\"https:\/\/www.youtube.com\/embed\/XHtqPEA2Z68?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>We&#8217;ve seen vast sums of money pumped into AI over the last few years, but the figures referenced here are eye-watering, even by those standards.<\/p>\n<p>The exact amounts each company is committing to the project have not been disclosed, but <a href=\"https:\/\/www.wsj.com\/tech\/ai\/tech-leaders-pledge-up-to-500-billion-in-ai-investment-in-u-s-da506cd4\" target=\"_blank\">The Wall Street Journal estimates<\/a> that Oracle has about $11 billion in cash and marketable securities but also holds a sizeable amount of debt. SoftBank is thought to have approximately $30 billion of cash available. OpenAI has raised many billions but has yet to make a profit, so it isn&#8217;t clear how the companies involved will reach the $500 billion investment figure.<\/p>\n<p>Currently, all we know is SoftBank plans to invite additional investors and raise debt from third parties.<\/p>\n<p><strong>Microsoft, Arm Holdings, and Nvidia<\/strong> were also named &#8220;technology partners&#8221; for the project, which rounds off an impressive list of heavy hitters from the tech world.<\/p>\n<p>In an interesting twist, the normally reticent <a href=\"https:\/\/www.techopedia.com\/elon-musk-net-worth\">Elon Musk<\/a> hit out at the project, <a href=\"https:\/\/x.com\/elonmusk\/status\/1881923570458304780\" target=\"_blank\">proclaiming<\/a>, &#8220;They don&#8217;t actually have the money,&#8221; referencing those involved. He also added that he had it &#8220;on good authority&#8221; that SoftBank had secured less than $10 billion.<\/p>\n<p>This was enough for OpenAI&#8217;s Sam Altman to take the bait, responding on X that Musk was &#8220;wrong, as you surely know.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\"><p>wrong, as you surely know.<br \/>\nwant to come visit the first site already under way?<\/p>\n<p>this is great for the country. i realize what is great for the country isn&#8217;t always what&#8217;s optimal for your companies, but in your new role i hope you&#8217;ll mostly put \ud83c\uddfa\ud83c\uddf8 first.<\/p>\n<p>\u2014 Sam Altman (@sama) <a href=\"https:\/\/twitter.com\/sama\/status\/1882106524090482701?ref_src=twsrc%5Etfw\" target=\"_blank\">January 22, 2025<\/a><\/p><\/blockquote>\n<p><script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>It&#8217;s since been reported that OpenAI has promised $19 billion of the total, which is hard to comprehend for a company that is estimated to have raised around $24 billion over the course of its lifecycle.<\/p>\n<p>SoftBank is thought to be contributing a similar amount as one of the two main partners involved. Oracle and MGX are said to be putting in around $7 billion between them, which all comes to significantly short of the initial $100 billion investment, let alone the $500 billion.<\/p>\n<h3>What Are the Pros &amp; Cons?<\/h3>\n<div class=\"su-row\"><div class=\"su-column su-column-size-1-2\"><div class=\"su-column-inner su-u-clearfix su-u-trim\">\n<h3>Pros<\/h3>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Strengthens US leadership in AI development<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Demonstrates confidence with a $500 billion investment plan<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Unites major tech players like OpenAI, SoftBank, and Nvidia<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Creates jobs and infrastructure with new data centers<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n<div class=\"su-column su-column-size-1-2 pros_icons_\"><div class=\"su-column-inner su-u-clearfix su-u-trim\">\n<h3>Cons<\/h3>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Raises concerns over securing full funding and profitability<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Risks monopolization, stifling competition and innovation<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Smaller AI firms may struggle against resource consolidation<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Long-term success depends on achieving projected returns<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div>\n<p>On the surface, the pros and cons of this move seem reasonably straightforward. The <strong>US continues its dominance in AI<\/strong>, with the government getting massive financial commitments from the most prominent figures in the sector.<\/p>\n<p>This essentially ties their fortunes to that of the Trump administration, meaning<strong> their success will be his success<\/strong>, and the scale of the commitment locks those companies into the project for the foreseeable future.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\"><p>On the geopolitical front, this is the first time I believe AI infrastructure has been made tangible as a truly determining factor in economic competitiveness, national security, and technological influence.<br \/>\nThey believe they can get breakthroughs in medicine, materials\u2026<\/p>\n<p>\u2014 John Kinloch (@on3John) <a href=\"https:\/\/twitter.com\/on3John\/status\/1882053192126513661?ref_src=twsrc%5Etfw\" target=\"_blank\">January 22, 2025<\/a><\/p><\/blockquote>\n<p><script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The main drawback is <strong>what happens if the parties involved have overestimated the returns they&#8217;ll see from this<\/strong>. This may seem like a nonsensical argument, as AI is predicted to permeate almost every facet of the business world. However, there are still some dissenting voices who remain unconvinced about where the money will come from to pay off the huge investments in AI.<\/p>\n<p>As previously stated, OpenAI has raised a huge amount of capital but has yet to turn a profit. However unlikely it seems, what happens if this doesn&#8217;t change in the next four years?<\/p>\n<p>The other potential drawback is the <strong>consequences of pooling the resources into one or two companies<\/strong>. Others, such as <a href=\"https:\/\/www.techopedia.com\/anthropic-ceo-ai-predictions\">Anthropic<\/a>, are still receiving significant investments from the biggest companies, but those pale in comparison to the cash allegedly being pumped into the Stargate project.<\/p>\n<div class=\"su-note\"  style=\"border-color:#e5e54c;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#FFFF66;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">\n<p>Will this eventually mean that other companies can&#8217;t compete with OpenAI purely because their pockets aren&#8217;t as deep?<\/p>\n<p><strong>Competition is seen as the engine for innovation<\/strong>, and if the AI industry begins to morph into something more monopolistic, it could stifle innovation or, at the very least, limit consumer choice.<\/p>\n<\/div><\/div>\n<h2><span id=\"tiktok_acquisition_rumors_who_is_the_savior\">TikTok Acquisition Rumors: Who Is the Savior?<\/span><\/h2>\n<p>Another of the big stories to emerge this week is the <strong>speculation about Elon Musk possibly acquiring TikTok<\/strong>. During a press conference on Tuesday, Trump suggested he would be open to Elon Musk or Oracle Chairman Larry Ellison buying TikTok.<\/p>\n<p><a href=\"https:\/\/www.techopedia.com\/tiktok-ban-explained\">TikTok&#8217;s fate remains in the balance<\/a> following its US ban and subsequent executive order granting the social media platform a 75-day reprieve.<\/p>\n<p><a href=\"https:\/\/www.techopedia.com\/who-owns-tiktok\">ByteDance, the company that owns TikTok<\/a>, has not said publicly whether it would be willing to sell, but it&#8217;s been reported that the Chinese government has considered involving Musk, who has repeatedly argued against banning TikTok. He also has the right connections and working relationships with Chinese officials through Tesla&#8217;s presence in China.<\/p>\n<p>Given the precarious nature of TikTok&#8217;s US business \u2013 it went dark in the US for 14 hours over the weekend \u2013 and the Supreme Court&#8217;s rubber stamping of the ban, they have sought assurances from President Trump.<\/p>\n<p>TikTok&#8217;s US business is valued at about $50 billion, which limits the list of people who would have the means to acquire the platform, but a 50\/50 split has also been suggested by Trump.<\/p>\n<p>The mutual respect between Musk and Chinese officials places him as the likeliest option, especially as Larry Ellison and Oracle are not in the same league in terms of wealth.<\/p>\n<p>The secretive nature of the businesses involved makes it hard to predict the outcome. A deal may be agreed soon, or we could wait most of the 75 days before any announcement is made.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Even if ByteDance-owned TikTok is sold to Elon Musk or another U.S. tech giant under &#39;divest or ban&#39; laws, <a href=\"https:\/\/twitter.com\/LeezaGarber?ref_src=twsrc%5Etfw\" target=\"_blank\">@LeezaGarber<\/a> explains that data and privacy concerns will remain a huge issue due to America&#39;s lack of unified data privacy protection laws. <a href=\"https:\/\/t.co\/Q75xBIW2O3\" target=\"_blank\">pic.twitter.com\/Q75xBIW2O3<\/a><\/p>\n<p>&mdash; GBN America (@GBNAmerica) <a href=\"https:\/\/twitter.com\/GBNAmerica\/status\/1879985726680433143?ref_src=twsrc%5Etfw\" target=\"_blank\">January 16, 2025<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3>What Are the Pros &amp; Cons?<\/h3>\n<div class=\"su-row\"><div class=\"su-column su-column-size-1-2\"><div class=\"su-column-inner su-u-clearfix su-u-trim\">\n<h3>Pros<\/h3>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Resolving ownership issues could allow TikTok to continue operating in the US.<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> TikTok contributes billions annually to the US economy.<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> A deal could ease political tensions around data and privacy concerns.<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> A successful acquisition ensures continued access for millions of US users.<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n<div class=\"su-column su-column-size-1-2 pros_icons_\"><div class=\"su-column-inner su-u-clearfix su-u-trim\">\n<h3>Cons<\/h3>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> TikTok&#8217;s $50 billion valuation limits potential buyers, complicating negotiations.<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Political posturing may delay or derail a resolution.<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Concerns about foreign ownership and influence could persist even after a sale.<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> A Musk-led acquisition might consolidate power in tech further.<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div>\n<p>There are many US TikTokers who won&#8217;t care who owns the platform as long as they can continue to use it.<\/p>\n<p>This is as much about political posturing as it is about data and privacy concerns. Does TikTok really do anything that Google and Meta don&#8217;t already do?<\/p>\n<p>The difference is the real or perceived threat of TikTok being owned by a Chinese company that is seen as being controlled by Beijing.<\/p>\n<p>The amount of money at stake means <strong>an amicable resolution is probably more likely<\/strong>. The balance of power and leverage will determine who gets to claim victory when all is said and done.<\/p>\n<div class=\"su-note\"  style=\"border-color:#e5e54c;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#FFFF66;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">\n<p><strong>TikTok contributes billions of dollars to the US economy every year<\/strong>, which probably means that business sense will prevail in the end. And ultimately, whether that&#8217;s a good or bad thing depends on who you ask.<br \/>\n<\/div><\/div>\n<h2><span id=\"tech_oligarchy_or_progress_trumps_bold_bet\">Tech Oligarchy or Progress? Trump&#8217;s Bold Bet<\/span><\/h2>\n<p><iframe width=\"800\" height=\"950\" src=\"https:\/\/www.linkedin.com\/embed\/feed\/update\/urn:li:share:7287338245825196033\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" title=\"Embedded post\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span>\ufeff<\/span><\/iframe><\/p>\n<p>The most striking image to emerge from Trump&#8217;s inauguration is the people cosying up to the new president. The inner circle now includes <strong>more than a dozen billionaires<\/strong>. Public Citizen, via The Atlantic, reported that sixteen of his appointees come from the top one-ten-thousandth percent.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Tech oligarchs were a notable presence at the inauguration ceremony. Thanks to Citizens United, we have a political system dominated by ultra-wealthy individuals to a degree never before seen in American politics \u2014 a cash-for-access economy. <a href=\"https:\/\/t.co\/xd9MOpbB6f\" target=\"_blank\">https:\/\/t.co\/xd9MOpbB6f<\/a><\/p>\n<p>&mdash; Brennan Center (@BrennanCenter) <a href=\"https:\/\/twitter.com\/BrennanCenter\/status\/1881425778363245042?ref_src=twsrc%5Etfw\" target=\"_blank\">January 20, 2025<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Exactly what Musk, <a href=\"https:\/\/www.techopedia.com\/jeff-bezos-net-worth\">Bezos<\/a>, and <a href=\"https:\/\/www.techopedia.com\/mark-zuckerberg-net-worth\">Zuckerberg<\/a> can expect in return for their support is unclear. At least in the case of Bezos and Zuckerberg, it seems mostly transactional, particularly given their past criticism of Trump. Musk appears more ideologically aligned, and his prominent role suggests a deeper connection with the new president.<\/p>\n<p>It could be that there is no explicit quid pro quo and it is more about showing your support if and when you require a favor in return. <strong>All might be seeking favorable terms for various business dealings<\/strong> with the new government, ranging from cloud computing, antitrust assistance, all the way to rocket contracts.<\/p>\n<h3>What Are the Pros &amp; Cons?<\/h3>\n<div class=\"su-row\"><div class=\"su-column su-column-size-1-2\"><div class=\"su-column-inner su-u-clearfix su-u-trim\">\n<h3>Pros<\/h3>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Tech leaders&#8217; inclusion could accelerate innovation through closer collaboration with the government.<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Business leaders like Musk, Bezos, and Zuckerberg bring expertise in critical industries such as AI, space exploration, and cloud computing.<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Diverse economic sectors reduce the likelihood of monopolistic control.<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Public scrutiny ensures that these alliances remain under constant observation.<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n<div class=\"su-column su-column-size-1-2 pros_icons_\"><div class=\"su-column-inner su-u-clearfix su-u-trim\">\n<h3>Cons<\/h3>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> The legislative system may be ill-equipped to address concerns about concentrated wealth and influence.<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Business leaders risk political retaliation if they fall out of favor with Trump.<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Overlapping interests among tech giants could lead to conflicts.<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Concerns of profiteering and monopolistic tendencies persist despite counterarguments of economic diversity.<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div>\n<p>The cons of this new reality include a<strong> lagging legislative apparatus<\/strong> that is not ready to deal with what some see as blatant profiteering. We have already seen the limits of the US justice system regarding the president, who will certainly be emboldened for his second term.<\/p>\n<p>Depending on your outlook, another potential con is <strong>what happens when these business leaders lose favor or frustrate the president<\/strong>. If what&#8217;s past is prologue, you can expect repercussions if you get on the wrong side of President Trump. For them, for the time being, at least, it is a gamble worth taking.<\/p>\n<p>Rather than balance this section with a list of reasons promoting a tech oligarchy, we can instead challenge the tech oligarchy label and ask if that is really an accurate reflection.<\/p>\n<p><a href=\"https:\/\/www.economist.com\/business\/2025\/01\/21\/donald-trumps-america-will-not-become-a-tech-oligarchy\" target=\"_blank\">The Economist<\/a> puts the combined net worth of Elon Musk, Jeff Bezos, and Mark Zuckerberg at $911 billion. Although that is a nonsensically large amount of money, Amazon, Meta, and Tesla are estimated to account for just <strong>1.8% of US GDP<\/strong>. By many, the <strong>American economy is just too diverse and sprawling for any one, two, or three individuals to control<\/strong> enough of it to gain a dangerous amount of power and influence.<\/p>\n<p>While Amazon may be the leading online retailer in the US, there is Walmart and other alternatives that customers can turn to. Instagram, Facebook, and Threads are three options among a number of other social media platforms. And Tesla is hardly the one and only manufacturer of EVs.<\/p>\n<p>As mentioned above, they may be one big happy family this week, but does anyone really expect that to last for the long term, or even next month, for that matter?<\/p>\n<p>Public opinion from Trump&#8217;s base could turn against these tech billionaires in the blink of an eye.<\/p>\n<p>They could also turn on each other, particularly when you consider that, unlike in traditional oligarchies, the interests of these key players overlap in some areas. X and Threads for example, and while SpaceX is the leading private space program, there are other options there, too. AI is also set to be a battleground now and in the years to come. What are the chances of the competition not turning ugly at some point and causing a rift?<\/p>\n<p>Time will tell if the concern over Trump&#8217;s newly constituted inner circle has been gauged appropriately or if we&#8217;re hand-wringing over what are striking optics.<\/p>\n<h2><span id=\"the_bottom_line\">The Bottom Line<\/span><\/h2>\n<p>The pace of the announcements seems to have caused a degree of whiplash. The stark contrast between this week and the last few weeks of the Biden administration may be partly responsible for people&#8217;s reactions to the news.<\/p>\n<p>While the headline figures involved in some of these initiatives seem almost too big to fathom, it&#8217;s yet to be seen how binding the agreements are. Things could meaningfully change between now and when the projects are due to be delivered.<\/p>\n<p>Although work has been underway for some time, the rate of change makes it very hard to predict with any degree of certainty how things will look in the coming months and years.<\/p>\n<p>We can also expect more headline announcements in the coming weeks as the new administration seeks to hit the ground running.<\/p>\n<h2><span id=\"faqs\">FAQs<\/span><\/h2>\n<div class=\"man_faq_sec\" itemscope itemtype=\"https:\/\/schema.org\/FAQPage\"><\/time><section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">What is the major AI project announced this week?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">President Trump has announced a new AI initiative called &#8216;Stargate,&#8217; spearheaded by OpenAI and SoftBank, which will allegedly receive $500 billion in investments over the next four years.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">Is Elon Musk buying TikTok?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">Trump has floated the idea that Musk or Oracle chairman Larry Ellison could acquire TikTok and enable it to continue operating in the US.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">What is a tech oligarchy?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">This is an updated notion from the Russian oligarchs of the 1990s, which concentrated power in the hands of a few powerful and unelected individuals. It is feared that something similar will happen with Elon Musk, Mark Zuckerberg, and Jeff Bezos aligning themselves with President Trump.<\/p>\r\n                <\/div><\/div><\/section>\n<div class=\"reference-content\">\n<div class=\"reference-heading reference-content-collapsible-heading\">\n<h2><span id=\"references\">References<\/span><\/h2>\n<\/div>\n<div class=\"reference-content-body\">\n<ol>\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=XHtqPEA2Z68\" target=\"_blank\">Trump announces $500 billion AI infrastructure project<\/a> (YouTube)<\/li>\n<li><a href=\"https:\/\/www.wsj.com\/tech\/ai\/tech-leaders-pledge-up-to-500-billion-in-ai-investment-in-u-s-da506cd4\" target=\"_blank\">wsj.com<\/a> (Wsj)<\/li>\n<li><a href=\"https:\/\/x.com\/elonmusk\/status\/1881923570458304780\" target=\"_blank\">Elon Musk on X<\/a> (X)<\/li>\n<li><a href=\"https:\/\/x.com\/sama\/status\/1882106524090482701\" target=\"_blank\">Sam Altman on X<\/a> (X)<\/li>\n<li><a href=\"https:\/\/x.com\/on3John\/status\/1882053192126513661\" target=\"_blank\">John Kinloch on X<\/a> (X)<\/li>\n<li><a href=\"https:\/\/x.com\/GBNAmerica\/status\/1879985726680433143\" target=\"_blank\">GBN America on X<\/a> (X)<\/li>\n<li><a href=\"https:\/\/www.linkedin.com\/posts\/jaanikamerilo_this-is-how-the-new-us-oligarchy-looks-like-activity-7287338246857003008-34JZ\/?utm_source=share&amp;utm_medium=member_desktop\" target=\"_blank\">Jaanika Merilo on LinkedIn<\/a> (LinkedIn)<\/li>\n<li><a href=\"https:\/\/x.com\/BrennanCenter\/status\/1881425778363245042\" target=\"_blank\">Brennan Center on X<\/a> (X)<\/li>\n<li><a href=\"https:\/\/www.economist.com\/business\/2025\/01\/21\/donald-trumps-america-will-not-become-a-tech-oligarchy\" target=\"_blank\">Donald Trump&#8217;s America will not become a tech oligarchy<\/a> (Economist)<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>It has not taken long for the technology world to be shaken up following President Donald Trump&#8217;s return to office. From his decision to repeal the AI safety legislation to a bold $500 billion AI infrastructure project Stargate, TikTok controversy, and Big Tech oligarchy concerns, we look more broadly at the latest maneuvers and announcements [&hellip;]<\/p>\n","protected":false},"author":287197,"featured_media":379777,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"no","_lmt_disable":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[573],"tags":[],"category_partsoff":[],"class_list":["post-379754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.2 (Yoast SEO v24.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Trump 2.0 First Tech Moves: Innovation or Big Tech Oligarchy? - Techopedia<\/title>\n<meta name=\"description\" content=\"Explore the pros and cons of the first round of technology developments from President Trump&#039;s first week in office. What impact will his bold tech moves have?\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump 2.0 First Tech Moves: Innovation or Big Tech Oligarchy?\" \/>\n<meta property=\"og:description\" content=\"Explore the pros and cons of the first round of technology developments from President Trump&#039;s first week in office. 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