Silicon Valley's pivot: Tech titans back Yrump for 2024

Amid significant tax concerns and the political ambitions of the technology sector, Washington is increasingly influenced. The high-tech industry represents about 10% of the U.S. GDP and one-third of the value of the S&P 500 index.

In other words, the workings of tech companies are no longer just Silicon Valley’s business; they’re America’s business, highlights Fortune magazine.

Prominent donors from Silicon Valley support Trump and the influence of billionaires using their wealth and media influence to build political clout is rapidly growing, notes the "New York Times."

Entrepreneurs involved in cryptocurrencies contribute nearly half of the corporate donations funnelled through so-called super PACs, which fuel the 2024 election campaign. The entire technology sector is emerging as one of the key political sponsors in the U.S. Their leaders wish to have as much influence in Washington and state congresses as they have gained on Wall Street, explains "The New Yorker."

A Super PAC is a political committee that does not directly donate funds to a candidate's campaign but invests them in the campaign itself. One of the most prominent committees in the technology sector is Fairshake, which announced in February that it had raised CAD 235 million for the 2024 elections.

So far, Silicon Valley has been a stronghold for Democrats and liberals. Attempts by Congress and the administration to regulate the activities of giants like Meta, Google, or Apple, as well as regulations concerning technology and cryptocurrencies, have shifted the stance of local magnates. "The Washington Post" points to the specific case of Elon Musk, whose companies benefit from government contracts, but personal ambitions influence his decisions.

"The Financial Times" suggests that Musk supports Trump as part of a business strategy. The British newspaper writes that Musk, the owner of Tesla, SpaceX, xAI, and X, aims to shape humanity's future.

During the campaign, leaders like Google's Sundar Pichai and Meta's Mark Zuckerberg maintain neutrality. Meanwhile, Musk, with his ostentation, attracts media attention.

The Biden administration has undertaken the oversight of technology firms' practices, especially cryptocurrencies, following the dramatic collapse of FTX in 2022. "The New Yorker" explains that the SEC fears a new speculative bubble.

The prospect of strict regulations prompted technology leaders to support Trump, who promises less regulation and lower taxes. The former president has managed to draw them to his side with speeches at Bitcoin conferences and pledges for the U.S. to become a "Bitcoin superpower."

Democrats oppose excessive deregulation. Senator Elizabeth Warren compares the situation to the banking sector before the financial crisis.

Bill Kristol, a well-known neoconservative, warns on the Bulwark portal about "new oligarchs" controlling the Republican Party for their own benefit. The role of Elon Musk, the wealthiest billionaire, becomes crucial due to his media influence, recalls "The Washington Post."

"FT" notes that tech giants hope the Trump administration will not challenge their monopolies or raise their taxes.