Big Tech is throwing the party for Trump. Will it last?

Summary

POLITICO Tech Podcast Summary

Episode Title: Big Tech is throwing the party for Trump. Will it last?
Release Date: January 17, 2025
Host: Stephen Overle
Guest: Dasha Burns, POLITICO's White House Bureau Chief

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1. Introduction: Shifting Alliances Between Big Tech and the Trump Administration

In this episode of POLITICO Tech, host Stephen Overle and guest Dasha Burns explore the evolving relationship between major technology companies and former President Donald Trump as he prepares to govern again. The discussion centers on the notable presence of tech leaders at Trump's inauguration and the implications of their support for his administration.

2. Tech Leaders' Support at the Inauguration

Stephen Overle begins by highlighting the significant turnout of Silicon Valley executives at Trump's inauguration:

"When you watch the inauguration on Monday, look behind President elect Donald Trump and you'll see some familiar faces. Elon Musk will be there, not a big surprise. But also in prime seats will be Mark Zuckerberg, the CEO of Meta, Sundar Pichai, the CEO of Google, Tim Cook, the CEO of Apple, Jeff Bezos, the founder of Amazon, and even Sho Chu, the CEO of TikTok, an app that may be banned by then." (00:32)

This gathering marks a stark contrast from the first Trump term, where there was notable tension and hostility between the administration and tech companies.

3. Evolution of Tech and Trump Relations

Dasha Burns discusses the transformation in the relationship:

"They're just trying to build this new relationship that really hasn't existed until very recently. I mean, it's crazy to think just how seismic of a shift this is." (03:53)

She references her interview with Alex Bruzewitz, a MAGA influencer, who revealed that Meta's policy changes, such as ending fact-checking, were influenced by consultations with Trump-aligned individuals. This indicates a deeper collaboration between Big Tech and the Trump administration.

4. Resetting the Relationship Post-Biden

The conversation delves into how tech companies, previously at odds with both Trump and Biden administrations, are seeking a "reset" in their relations with Washington:

"Silicon Valley wants a cozier relationship with Trump after frequent tension, even hostility during his first term and a reset with Washington after feeling beat up by President Joe Biden for the past four years." (00:32)

Dasha Burns adds that Trump is now more open to collaborating with these tech leaders, viewing their support as pivotal for his governance:

"He feels like he has this mandate because of the election results, and he sees people coming to try to court conservatives because of him." (06:15)

5. Big Fundraisers and Bridging Traditional GOP with Tech

The episode highlights JD Vance's fundraising dinner in Palm Beach, which brought together traditional Republican donors and Silicon Valley figures like the Winklevoss twins:

"It was a $250,000 a plate fundraiser. That's big, big money. They raised well over seven figures." (10:13)

This event symbolizes the merging of the old GOP base with new tech-oriented donors, indicating a strategic move to secure financial and ideological support for the coming years.

6. The Role and Influence of Elon Musk

A significant portion of the discussion focuses on Elon Musk's influential position within Trump's circle. Stephen Overle references an interview with Steve Bannon, who expressed skepticism about Musk's actual power despite his prominent presence:

"Bannon thinks that Musk is influential, but not actually powerful." (12:36)

Dasha Burns counters by emphasizing Musk's substantial investments in Trump's campaigns and his undeniable impact on Trump's public image:

"Musk is such an important figure. He spent so much of his own money to help get Trump elected." (13:15)

This duality raises questions about Musk's long-term role and whether he can align his technological interests with Trump's populist agenda.

7. Skepticism Among Trump Supporters Towards Tech Leaders

Despite the visible support from Big Tech, there remains underlying skepticism among traditional Trump supporters:

"Conservatives aren't convinced yet. There's still a lot of skepticism and still a lot of mistrust." (16:07)

For instance, Mark Zuckerberg's recent content moderation changes were met with mixed reactions—celebrated by some on the right but viewed by others as opportunistic rather than genuine support.

8. Democratic Party's Complex Relationship with Big Tech

The episode also touches upon President Joe Biden's critical stance towards Big Tech, framing it as a "dangerous concentration of power":

"The free press is crumbling and editors are disappearing... We must hold the social platforms accountable to protect our children, our families, and our very democracy from the abuse of power." (00:32)

Dasha Burns discusses the challenges Democrats face in reconciling their need to regulate tech with the influence these companies wield:

"Democrats have some soul searching to do on that, among many other fronts." (17:21)

There's an ongoing debate within the Democratic Party on whether to maintain a confrontational approach or seek common ground with tech giants to foster innovation while ensuring accountability.

9. Future Implications and Closing Thoughts

As the episode concludes, Stephen Overle and Dasha Burns ponder the sustainability of Big Tech's support for Trump and its implications for both parties:

"The old school and new school breaking bread together, like. And right now they are. They're breaking bread together. But what happens when those policy differences... start to face that in a really practical way as they're trying to pass legislation or get executive orders signed?" (12:02)

The episode leaves listeners contemplating the delicate balance between technological innovation, political power, and ideological alignment as the United States navigates the post-election landscape.

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Notable Quotes:

• Stephen Overle (00:32): "Silicon Valley wants a cozier relationship with Trump... even hostility during his first term."

• Dasha Burns (03:53): "It's crazy to think just how seismic of a shift this is."

• Dasha Burns (06:15): "He feels like he has this mandate because of the election results..."

• Stephen Overle (12:36): "Bannon thinks that Musk is influential, but not actually powerful."

• Dasha Burns (13:15): "Musk is such an important figure. He spent so much of his own money to help get Trump elected."

• Stephen Overle (17:21): "Democrats have some soul searching to do on that..."

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Conclusion

This episode of POLITICO Tech provides a comprehensive analysis of the renewed alliance between Big Tech and Donald Trump, the complexities of their relationship, and the broader implications for American politics. It underscores the evolving dynamics as technology leaders seek influence in governance, while traditional political factions grapple with integrating these powerful entities into their strategic frameworks.

Transcript

[Dasha Burns]

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[Stephen Overle]

Hey, welcome to Politico tech. Today's Friday, January 17th. I'm Stephen Overle. When you watch the inauguration on Monday, look behind President elect Donald Trump and you'll see some familiar faces. Elon Musk will be there, not a big surprise. But also in prime seats will be Mark Zuckerberg, the CEO of Meta, Sundar Pichai, the CEO of Google, Tim Cook, the CEO of Apple, Jeff Bezos, the founder of Amazon, and even sho Chu, the CEO of TikTok, an app that may be banned by then. Tech leaders have been lining up behind Donald Trump since his election win, and Inauguration Day will put that dynamic on full display. Silicon Valley wants a cozier relationship with Trump after frequent tension, even hostility during during his first term and a reset with Washington after feeling beat up by President Joe Biden for the past four years. Speaking of Biden, he made his thoughts on tech clear in a parting speech on Wednesday. Americans are being buried under an avalanche of misinformation and disinformation enabling the abuse of power. The free press is crumbling and editors are disappearing. Social media is giving up on fact checking. The truth is smothered by lies told for power and for profit. We must hold the social platforms accountable to protect our children, our families, and our very democracy from the abuse of power. Dasha Burns is POLITICO's new White House bureau chief, and she's been reporting on tech's burgeoning influence with Trump and how his longtime supporters are responding to their new Silicon Valley friends. On the show today, Dasha and I delve into the splash tech is making at the inauguration and what to expect as Trump gets back to governing. Before we get into it, a quick note. We had a recording malfunction that affected the quality of my audio. It's a huge bummer, but it happens. And the conversation is still a good one, so give it a listen. Hey, Dasha, welcome to Politico Tech.

[Dasha Burns]

This is my first Politico audio event, so I'm very excited to be here.

[Stephen Overle]

Yeah, we're happy to have you. You're a brand new White House bureau chief. So you'll be covering Trump for the next four years for us.

[Dasha Burns]

I'm gonna be getting zero sleep for the next four years for you.

[Stephen Overle]

Yes, absolutely. Well, that sort of kicks off this weekend. I mean, it's the week, the inauguration. There will be parties all across Washington and tech is really making a big show. You know, I have to give sort of the crypto ball. Yes. Tonight. And Snoop Dogg is reportedly performing there.

[Dasha Burns]

We got the Snoop Scoop here at Politico.

[Stephen Overle]

Totally. The Snoop scoop. Exactly. My mom is obsessed with Snoop Dogg, like post Olympics. It's hilarious. But he's not. It's not just Snoop Dogg. You've got folks like investor Peter Thiel is hosting a party at his house. Meta CEO Mark Zuckerberg is hosting a reception after the inauguration. I mean, is this a party that will last four years for tech?

[Dasha Burns]

We'll see if the, if the bromance, the Tech Bros And Trump World keep seeing eye to eye. Actually, I don't even know if they really see eye to eye right now. I think they're just trying to build this new relationship that really hasn't existed until very recently. I mean, it's crazy to think just how seismic of a shift this is. I mean, last week, my first week at Politico, I interviewed Alex Bruzewitz, who, who's young, very much in Trump world. He's like a MAGA influencer. He's been known as sort of like the, the Trump troll. He's like the guy that plays the bulldog on all of these platforms on social for Trump. And, you know, I think for a long time, people kind of brushed him off because he was young and he was just this millennial or Gen Z kid on the Internet. But. But Joel Kaplan, the new head of policy for Facebook for Meta, had a zoom call with Alex Bruzewitz the day before they made all of those policy announcements about all the changes that they're gonna make. No more fact checking all of that stuff. Like, they ran it by Alex Bruzewitz. And I mean, I think that alone, like, says so much about how seriously they're taking the Trump administration, the people in Trump's orbit and the need to have that relationship.

[Stephen Overle]

Totally. No, it's. I mean, It's a complete 180 in many ways from the first time that Trump was president, when there was so much hesitancy on the part of tech to really embrace him and his policies. And at many points during his administration, there were Very prominent breaks between the Trump administration and Silicon Valley.

[Dasha Burns]

Actively antagonistic, I think.

[Stephen Overle]

Yes, absolutely. And I mean, of course, after January 6th, a lot of these platforms kicked Trump off, which sort of was kind of the culmination of years of tension and frustration. But that tension and frustration continued in a different way under President Biden. And so it does seem like now they want a reset for this relationship with Washington. And, you know, the inauguration on Monday seems like it will be very symbolic because you basically have the executives from many of the largest tech companies in prime seating behind Trump. You know, that's a pretty clear message, I think, of how they're trying to set themselves up this time around. Yeah.

[Dasha Burns]

And I think that, you know, Trump and his administration and his people have also signaled that they, too, are open to having this conversation. I think that the first Trump administration, he was coming in as the total outsider. There was a lot of resistance to him, not just in other spaces like tech, but like in Washington. And now that's not the case at all anymore. And I think he feels he has this mandate because of the election results, and he sees people coming to try to court conservatives because of him. And there's a olive branch mentality, I think, from him as well, because he feels like he is in the power position now, and he can be sort of like the merciful guy when it comes to the people that, have, like, wronged him and kind of welcome the olive branch extensions totally.

[Stephen Overle]

I mean, he's in a not only a literal position of power being the incoming president, but in terms of the power dynamics of this relationship, Trump very clearly has the upper hand. You knew these companies need him for the next four years more than he needs them. I think he has made that clear. And so now they are really trying to change things around. I would say for me, one of the things that's most surprising in some ways is that all of this is playing out so visibly. I mean, the big parties, tech executives at the inauguration, you know, I was saying earlier, it sort of has all the subtlety of like an unloved theater kid. You know, like, they, like, need the attention and the validation. You mentioned, like the meta changes, for instance, of their content moderation policies. Obviously, that's an example of this going even beyond just kind of public flattery. Have you gotten a sense of whether all of this is really working with Trump, Whether he actually is changing his mind about tech and about these Silicon Valley folks in a genuine way?

[Dasha Burns]

I think that he has folks in his camp. Look, Trump is not a tech Guru. And he is very much still a legacy media guy, but you saw him during the campaign because of some of the younger members of his staff, because of Baron Trump too. Barron, I think, played a pretty big role in getting him into crypto, for example, and getting him to understand what that is and why that matters. But Trump's old Trump is not the most tech forward in his own personal life.

[Stephen Overle]

Not a digital native at all.

[Dasha Burns]

Not a digital native as far as you can get from that. But he knows that this stuff is important. And I think he also is really curious about all of it and he's open to the people on his team that are very much in the know and very much online. I mean, his, his campaign was, was super online in that way too. Right. And like, he's like the biggest meme on the Internet. His TikTok account, all of that. It's just funny that like an 80 year old is like, has the biggest presence on the Internet of, of any of us. And so that's like that funny, like, contrast and dichotomy of like, he is not a digital native, but he himself has, you know, had such a massive impact on the Internet, including his own social media company, by the way.

[Stephen Overle]

Social. And you know, as much as Trump is not a digital native, what we do know about him is he's like a master of commanding attention.

[Dasha Burns]

Yeah.

[Stephen Overle]

And you know, we use Twitter now x prolifically in his first term. Right. To like make announcements or attack opponents. And so he does know how to leverage social media. And now he's sort of, I think, figuring out a leverage in some ways, these companies that run the social media. There is also, though, some courting happening out of public view. You reported recently on a fundraising dinner in Palm Beach, Florida, hosted by Vice President elect J.D. vance. Tell me about that.

[Dasha Burns]

Yeah, and you had, speaking of crypto and like the tech world, you had the Winklevoss twins there who, of course, you know, anyone who knows anything about Bitcoin, you are more expert at this than me, but they're massive there. So, yeah, J.D. vance, it was a $250,000 a plate fundraiser. That's big, big money. They raised well over seven figures. And this is his way to show that, you know, ideologically he wants to be the heir apparent, but also, you know, being able to command, you know, those, those kinds of figures and, and be that fundraising powerhouse that, that says a lot too, because I think there's this new iteration of the MAGA movement with just what the Trump administration looks like right now. But there has to be some thinking, some forward thinking about, okay, well, what. What is the future of this party and who is going to take it into that next phase? I mean, in two years, we're going to have midterms. I think Trump is really seeing. Trump and his team are seeing these two years is like the big crunch time to get things done, because then after that, you have to start looking forward. But, you know, for somebod like JD that conversation kind of starts now.

[Stephen Overle]

Right, well. And JD Vance, you know, has his own connections to Silicon Valley and the venture capital world just because of his own professional.

[Dasha Burns]

All of those guys.

[Stephen Overle]

Yeah, exactly. Peter Thiel, big benefactor of his Ohio Senate race and his political career in general. It was interesting to me reading about this dinner in Palm beach, because you kind of had, like, these legacy Republican, you know, Trump supporters, along with some of these newer tech players. And it's sort of bringing, in many ways, I think, this new dynamic into focus.

[Dasha Burns]

Yeah. The old school and new school breaking bread together, like. And right now they are. They're breaking bread together. But what happens when those policy differences, the philosophical and ideological differences, start to, you know, when they have to start facing that in a really practical way as they're trying to pass legislation or get executive orders signed?

[Stephen Overle]

Well, yeah, it sort of brings me to, you know, this political event we had earlier in the week. You interviewed Trump's former chief strategist, Steve Bannon, who had some opinions to share about Elon Musk. Let's listen to a quick clip of that interview.

[Dasha Burns]

Do you think he has too much influence right now? I mean, he's been posted up at Mar A Lago. He's been in Trump's ear nonstop since the election.

[Stephen Overle]

As a teacher in Harvard Business School, kind of in the first year. There's power and there's influence. What's shocking to me is he doesn't have much power.

[Dasha Burns]

Why do you say that?

[Stephen Overle]

Well, because he. Because he doesn't have the ability to actually make decisions and inform those decisions and drive those decisions. So Bannon thinks that Musk is influential, but not actually powerful. I'm curious how those comments from him kind of hold up against what you've seen from Trump's orbit so far.

[Dasha Burns]

I'm surprised it took us this long to get to Elon Musk, because he is, like, the big elephant in the room.

[Stephen Overle]

Yeah, for sure.

[Dasha Burns]

I mean, I think a lot of folks in Trump's orbit are wondering right now how that relationship's gonna play out, how it's gonna affect what they wanna Do. He does tend to tire of people that steal the spotlight. But Musk is such an important figure. He spent so much of his own money to help get Trump elected. I mean, that's something that even Bannon acknowledged. He's like, look, when, when you put up that much, like, you have a seat at the table and you're probably not going away, which was a little bit of a, you know, he kind of walked back some of the rhetoric around Musk that he had used even just a couple of days before our convers. So I wonder if someone told him to cool it. But I think that he is going to be a harder one to try to really sideline. And I think Trump is fascinated by him. I mean, I was at so many rallies when either Musk was there jumping around the stage or Trump was talking about Musk. And he does get really interested in certain kinds of people. And Musk is someone that's like, really grabbed his attention. But when you run as a populist for the working class and, you know, get blue dog Democrats who voted blue and for years and voting red, like, how does that play out when you start inviting all of these moguls who have different kinds of interests into, into the fold? And I think that's why you have someone like Bannon who is, you know, not, not thrilled by that, because, you know, he's, he, Bannon said to me that he wants to turn Musk from a techno feudalist to populist nationalist. I'm like, I, I, I don't know how that's gonna work.

[Stephen Overle]

I don't know that that's gonna happen. Yeah, I thought that was such an interesting comment from him because, you know, how these groups kind of settle in now that you pivot from campaigning to the transition and then to governing is gonna be really interesting in the campaign trail. You can promise anything. And yes, it is not surprising in any way to me that Trump would love appearing on stage and having the support of the richest person in the world. But, you know, there's going to be skepticism, I think, and we've already seen some of this skepticism towards some of these tech leaders from longtime Trump supporters. You know, when Mark Zuckerberg, for instance, announced these recent content moderation changes, there was plenty of celebration on the right, of course, but there was also a sense that, like, Mark Zuckerberg was maybe being opportunistic rather than authentic. And, you know, showing up kind of late to the Trump Party compared to some of these folks who have been riding with Trump for eight years. Yeah.

[Dasha Burns]

And one thing Alex Brucewicz said to me, conservatives aren't convinced yet. You know, there's still a lot of skepticism and still a lot of mistrust. I mean, that is really deep seated at this point, and it's going to take a lot to change that. That's not something that's necessarily gonna happen overnight.

[Stephen Overle]

You know, we've obviously been talking a lot about the tech's relationship with conservatives. At the top of the episode, we heard comments that President Joe Biden made on Wednesday night in which he warned about, quote, a dangerous concentration of power and the influence of the, quote, tech industrial complex, which to me seems like a pretty clear shot at the Silicon Valley leaders who are cozying up to Trump. And to me, it was just a reminder of how much Democratic politics around tech has changed because many of these guys were considered titans under Obama and now they're considered oligarchs under Biden. What does this relationship with tech mean for Democrats going forward, do you think?

[Dasha Burns]

I think there are a lot of questions for Dems. And the big one that I think will impact across the board, including what we're talking about here, is how much are Democrats, the resistance? I think there are a lot of issues that the American people have made a statement on that has cut against the grain of some of what Democratic leadership has done and has pushed for. And I think on issues like immigration and potentially tech as well, the question is how much is everything like a no, we have to fight Trump on this versus how much do you kind of look for common ground where you can agree and get something done? I mean, I think that tech has been the wild, wild west for a long time and government has been extremely slow to catch up and to figure out how to properly regulate. And I don't think anyone has really like found the answer to that. And it's already changing so much so fast. And so I think Democrats have some soul searching to do on that, among many other fronts.

[Stephen Overle]

Right? No, totally. I think their sort of relationship with tech, their rhetoric toward the tech industry is something that we might see some Democrats really questioning and second guessing. We've already seen that from some folks like Ro Khanna, Silicon Valley progressive who thinks Democrats need to be more pro tech, pro innovation, et cetera. And so I do think we'll see a lot of that from the Democratic Party in the next two years. Well, Dasha, so great to have you on the podcast. Thank you for being here.

[Dasha Burns]

It's so much fun. Let's do more.

[Stephen Overle]

That's all for today's. Politico Tech. If you enjoy Politico Tech, be sure to subscribe on Apple, Spotify, or your preferred podcast player. And for more tech news, subscribe to our newsletters, Digital Future Daily and Morning Tech. Music in our show comes from the mysterious Breakmaster Cylinder. Our managing producer is Annie Reiss. Our producer is Afra Abdullah. And our editors are Steve Heuser, Daniela Cheslo, and Louisa Savage. I'm Stephen Overle. See you back here on Monday.