US — TechCrunch
From the front row to the hot seat — what the midterms mean for Big Tech
Policy2 min read
Big Tech companies that grew close to President Trump are now trying to build ties with Democrats, who may win more power after the midterm elections. The story looks at whether these moves will work.
Tech companies shift toward Democrats
Before the midterm elections, OpenAI hired Jessica Schumer, daughter of Democratic Senator Chuck Schumer. OpenAI also said it would call its data centers "compute campuses." These moves come after two years in which many big tech leaders worked closely with President Trump and his team. Now, with Democrats likely to gain power, the same companies want better ties with them.
How the companies got close to Trump
Many tech leaders went to White House events. Some companies cut back diversity, equity and inclusion programs. Some executives gave millions of dollars to super PACs, which are groups that raise money to support candidates. The industry also gained from tax breaks, paused federal investigations, and looser rules for AI. At the same time, Meta faced lawsuits and fines worth billions of dollars, and OpenAI faced lawsuits saying its technology hurt users.
Key facts
- OpenAI hired the daughter of a leading Democratic senator just before the midterms.
- Meta faced lawsuits and fines worth billions of dollars.
- Last December, the Trump administration created the AI Litigation Task Force to challenge state AI laws.
- Democrats have promised to tighten oversight of AI.
Why this matters
Experts doubt that better images alone will win back trust. J.B. Branch of Public Citizen called the moves "PR washing," meaning they make companies look good without real change. Alice Marwick of Data & Society said it is "a little too late." The real fights may happen in state capitols and in towns that decide whether to host data centers, not just in Washington.
What to watch
- Whether Democrats pass stricter AI rules and Big Tech oversight.
- Whether more states pass AI laws and sue tech companies.
- Whether communities pass data center moratoriums, which are temporary bans on building them.
- How the AI Litigation Task Force challenges state AI laws.
- Whether political gridlock blocks major federal action over the next two years.
Glossary
- OpenAI
- An AI company that makes ChatGPT and other AI tools.
- super PACs
- Political groups that raise and spend large amounts of money to support candidates.
- data centers
- Large buildings full of computers that run online services and AI.
- Public Citizen
- A nonprofit advocacy group that works on consumer and policy issues; it says it is nonpartisan.
- AI Litigation Task Force
- A federal group created by the Trump administration to challenge state AI laws.
- moratoriums
- Official pauses or bans on an activity for a set time.