A Year Later, Big Tech Surpasses MAGA Populists in Strategy

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A year ago, Steve Bannon, the influential MAGA podcaster, was excited to see Big Tech CEOs rallying around Donald Trump. In the lead-up to his inauguration, these industry giants were visiting Mar-a-Lago, making financial contributions, and even appearing behind him during his second inauguration. Bannon claimed that for years, Big Tech had undermined Trump, with outlets like the Washington Post criticizing him and platforms like Meta and Alphabet allegedly silencing his voice. But now, he argued, they had become “supplicants” to Trump, who had appointed MAGA regulators ready to challenge these companies at any moment. “Most people in our movement see this as President Trump breaking the oligarchs,” he boasted.

Fast forward a year, and it seems the oligarchs have regained their influence over Trump, one donation at a time. The initial push to dismantle Big Tech, which was a major MAGA objective at the start of his term, has lost momentum. The effort to have an American company acquire TikTok, once deemed a cultural threat, is still in play, but Trump has surprisingly embraced the platform, contradicting MAGA principles. The initiative to curb AI companies from infringing on states’ rights and conservative values has been overshadowed by aggressive lobbying from billionaire David Sacks, who persuaded Trump to sign an executive order that undermines states attempting to regulate AI, despite backlash from conservatives.

Even minor shifts from staunch MAGA stances in favor of the tech industry have sparked significant reactions. Last November, Trump faced backlash from the right for supporting H1-B visas for skilled foreign tech workers, suggesting that American workers lacked the necessary skills for Big Tech roles. Although he later made drastic changes to the immigration lottery system to align more with nativist sentiments, the ongoing existence of the H1-B visa program created a rift within the MAGA community: how could Trump allow foreign workers, let alone imply they were more qualified than Americans? What kind of “America First” stance was that?

Throughout his career, Trump has maintained a consistent strategy: encouraging competition among various factions for his attention and favor. This dynamic was evident during his first term, with New York financiers, the Republican establishment, career officials, his children, and the proto-MAGA faction all vying for influence within the West Wing. By the time Trump hit the campaign trail in 2024, the New Yorkers had burned out and retreated, the Republican establishment had capitulated, and career officials were on the verge of being purged. MAGA populism had triumphed, and they believed, to paraphrase Trump, that they would win so much they’d grow tired of winning. The populists have certainly made their mark in Trump’s second administration, with the Department of Justice targeting Trump’s critics, the Department of Homeland Security expanding ICE’s powers, and the Department of Defense engaging in controversial actions.

However, I didn’t expect that a year after witnessing tech CEOs cheer for Trump in the Rotunda, these “supplicants” would manage to sway him. The upcoming year holds uncertainty regarding the internal dynamics of the White House. It’s particularly noteworthy that Bannon, who once claimed there was a plan for Trump to pursue an unconstitutional third term, is now reportedly considering a presidential run himself.

This week in tech news:
* “How much can a city take?”: As Homeland Security’s actions in Minneapolis continue, locals are stepping up to patrol, protest, and stay connected through group texts.
* “Under Musk, the Grok disaster was inevitable”: The issues were inherent from the start.
* “Trump admin admits DOGE employees had access to off-limits Social Security data”: A court filing reveals that DOGE employees had more access to Social Security data than previously known.
* “Why Coinbase derailed the crypto industry’s political future”: The powerful exchange withdrew its support for the Senate CLARITY Act at the last moment, infuriating the broader crypto community.
* “Amazon’s CEO says tariffs are starting to ‘creep into’ pricing”: Andy Jassy notes that the supply of products Amazon pre-purchased in early 2025 has been depleted.
* “Minnesota wants to win a war of attrition”: The governor’s call to film ICE is part of a strategy to protect states’ rights.
* “Trump and Mid-Atlantic governors want tech companies to pay for new power plants”: They’re advocating for an ‘emergency’ power auction.
* “Canada is going to start importing Chinese EVs — will the US follow?”: President Trump has indicated he’s open to Chinese automakers setting up in the US, but there are still many obstacles.
* “‘Get Grok Gone’: Advocacy groups demand Apple and Google block X from app stores”: An open letter claims that Apple and Google are profiting from nonconsensual sexual deepfakes on X.
* “600,000 Trump Mobile phones sold? There’s no proof”: Viral sales figures lack credible evidence.

And now, a brief recess. The Senate is on a one-week break, during which I’ll be tracking the fallout from Coinbase’s actions regarding the CLARITY Act before the Senate Banking Committee reconvenes. Unfortunately, I’m not at Davos, where CEO Brian Armstrong is, and where many negotiations seem to be taking place. If you’re in a private Swiss meeting with tech leaders and have insights on whether a market structure bill will pass this year, feel free to reach out.

In the meantime, don’t fall for the billionaires’ traps highlighted in a recent report.

See you next week.