Tech CEOs were meant to be Trump’s “vassals”. Now, they have loosened the populists’ grip on him.
Tech CEOs were meant to be Trump’s “vassals”. Now, they have loosened the populists’ grip on him.
Welcome to Regulator, a newsletter aimed at Verge subscribers about the technology and tech entrepreneurs transforming American politics and the Trump administration. If you aren’t a subscriber yet and have an interest in Silicon Valley’s escapades in policy-making, you should sign up here! It’s Q1! Surely the corporate finances will accommodate it.
Just a year back, Steve Bannon, the influential, populist MAGA podcaster, was ecstatic to witness Big Tech CEOs gathering around Donald Trump. Days prior to his inauguration, key figures were flocking to Mar-a-Lago, making donations, even appearing to quietly support him during his second inauguration. For years, Bannon informed ABC’s Jonathan Karl in an interview that Big Tech had worked against Trump: for example, Jeff Bezos’ Washington Post had covered him critically, while Meta and Alphabet’s divisions had seemingly muted his online activity. Now, Bannon indicated, they were Trump’s “vassals” with MAGA regulators on hand to dismantle those companies at any moment. “Most individuals in our movement see this as President Trump defeating the oligarchs,” he boasted.
One year later, it appears the oligarchs have loosened MAGA’s control over Trump, one donation at a time.
The initiative to dismantle Big Tech, which was viewed as one of MAGA’s primary objectives at the term’s start? Not really progressing anymore. The attempt to have an American firm acquire TikTok, considered cultural poison by MAGA previously? Allegedly underway, although Trump is now supporting the platform against MAGA principles. The efforts to hinder AI companies from infringing on state rights, conservative morals, and jobs lost to AI? Compromised by billionaire David Sacks’ persistent lobbying, convincing Trump to sign an executive order undermining states writing or enforcing their AI regulations, despite significant conservative backlash.
Even minor shifts from firm MAGA stances to favor the tech sector and the reactions from the base are revealing. Last November, Trump incited outrage from the right by advocating for H1-B visas for skilled foreign tech workers, suggesting that American workers lacked “certain talents” that hindered Big Tech’s domestic hiring. While Trump drastically revisited the immigration lottery process towards a more nativist outcome, the continued existence of the H1-B visa program caused a massive divide within the MAGA community: how could Trump allow in any foreign labor, let alone insinuate they were superior to American workers? What kind of “America First” was that?
For decades, even as a business magnate, Trump maintained a consistent principle: groups and individuals must constantly vie for his attention and approval. This was frequent during Trump’s initial term, wherein New York bankers, the Republican party, career officials, Trump’s offspring, and the proto-MAGA faction were all competing within the West Wing. However, by the time Trump resumed the campaign trail in 2024, the New Yorkers were fatigued and returned home, the GOP had capitulated to Trump, and career officials were poised for erasure. MAGA populism had triumphed, and they believed, to paraphrase Trump, that they would achieve so much they would grow weary of success. It’s not as if the populists haven’t claimed ground during Trump’s second administration. The Department of Justice is waging lawfare against Trump’s opponents, the Department of Homeland Security has empowered ICE with an ominous mandate, and the Department of Defense (formerly War) abducted a foreign leader for amusement.
However, honestly, I would not have anticipated a year ago, as I saw the tech CEOs cheering Trump in the Rotunda, that these “vassals” would eventually influence Trump towards their ideals. I am unsure what the coming year holds regarding internal conflicts from the White House. I will however state, that it is very, very indicative that Bannon, who once crowed about a scheme for Trump to run for an unconstitutional third term, is reportedly considering a presidential campaign himself.
This week at The Verge:
- “How much can a city handle?” Scott Menslow: As Homeland Security’s offensive on Minneapolis reaches its third week, locals are volunteering for patrol duties, demonstrating in the streets, and keeping each other informed through group texts.
- “Under Musk, the Grok catastrophe was unavoidable,” Hayden Field: The challenges were inherent.
- “Trump administration acknowledges DOGE staff accessed restricted Social Security data”, Lauren Feiner: A court report reveals DOGE staff had greater access to Social Security records than previously acknowledged.
- “Why Coinbase disrupted the crypto sector’s political destiny”, Tina Nguyen: The influential exchange withdrew its backing of the Senate CLARITY Act at the last moment — enraging the entire crypto industry, from Kraken to a16z.
- “Amazon’s CEO states tariffs are beginning to ‘interfere with’ pricing”, Emma Roth: Andy Jassy indicates that the stock of products Amazon secured in early 2025 has ‘depleted.’
- “Minnesota aims to succeed in a war of attrition”, Sarah Jeong: The governor’s directive to film ICE is part of a strategy to uphold state rights — but not in that way.
- “Trump and Mid-Atlantic state governors want tech firms to fund new power facilities”, Justine Calma: They are advocating for an ‘emergency’ power auction.
- “Canada is set to start importing Chinese electric vehicles — will the US follow suit?”, Andrew J. Hawkins: President Trump recently indicated he was accepting of Chinese car manufacturers establishing operations in the US. However, a multitude of obstacles remains.
- “‘Remove Grok’: Advocacy groups demand Apple and Google prevent X from app stores”, Robert Hart: Apple and Google are profiting from the non-consensual sexual deepfakes inundating X, an open letter claims.
- “600,000 Trump Mobile devices sold? There’s no evidence”, Dominic Preston: Rumored sales figures circulated widely this week, but there isn’t solid proof backing them.
And now, Recess.
During the Senate’s one-week break, I will be observing the unfolding events of Coinbase thwarting the CLARITY Act regarding interest rates, before the Senate Banking Committee reconvenes. Regrettably, I am not in Davos, where CEO Brian Armstrong is and where most negotiations appear to be taking place. So, if you find yourself in any private Swiss meetings with fellow tech elites and have insights on whether a genuine market structure law will be enacted this coming year, please contact me at [email protected], or via Signal at tina_nguyen.19.
In the meantime, please don’t be misled like the billionaires in this Bloomberg article:
See you next week.
