Implications of Trump 2.0 for the US Tech Sector to Date

Donald Trump’s return to the White House in 2025 has set the stage for a significant transformation in the US technology landscape. Within the first month of his second term, Trump has actively dismantled Biden-era tech policies and introduced sweeping executive orders that are redefining AI governance, digital regulation, and energy policy.

His presidency is also marked by an unexpected partnership with Big Tech, as major firms like Apple, OpenAI, Meta, SoftBank, and Amazon actively support his administration. With billions of dollars now invested in AI infrastructure, data centers, and cloud computing, the US is reinforcing its commitment to domestic technological leadership.

AI regulation: Prioritizing deregulation over risk management

One of Trump’s most immediate and controversial actions was revoking Biden’s 2023 executive order on AI risk. Biden’s order mandated that developers of high-risk AI systems (such as advanced language models and autonomous decision-making tools) share their safety test results with the federal government prior to public release.

Trump’s choice to eliminate this rule indicates a pro-business, deregulated stance on AI development. Without federal oversight, AI companies—including OpenAI, Google Cloud, and Microsoft—are free to launch models without revealing potential risks, which could spur innovation but also raise concerns about misinformation, bias, and safety vulnerabilities.

“The United States has long been at the forefront of AI innovation, driven by the strength of our free markets, world-class research institutions, and entrepreneurial spirit,” Trump states in the executive order. “To maintain this leadership, we must develop AI systems that are free from ideological bias or engineered social agendas. With the right government policies, we can solidify our position as the global leader in AI and secure a brighter future for all Americans.”

This move has drawn criticism from AI ethicists, who caution that without safeguards, AI tools could be deployed without sufficient testing for societal impact. However, it has been welcomed by venture capitalists and Silicon Valley executives, who argue that regulation stifles innovation and that the free market should dictate AI’s direction.

The social media war: Ending censorship and rolling back fact-checking

Trump has long accused Big Tech of silencing conservative voices, and his January 2025 executive order to “immediately stop all government censorship” of social media represents his boldest move yet in deregulating online platforms.

The executive order prohibits government officials from pressuring tech companies to moderate content, even concerning election security, public health crises, or national disasters. It creates legal ambiguity around government agencies’ ability to communicate with platforms about disinformation threats and strengthens Trump’s opposition to Section 230 reforms, ensuring platforms maintain their legal immunity for user-generated content.

Meta, under Mark Zuckerberg, has already begun to remove third-party fact-checkers from Facebook and Instagram, leaving content moderation largely to Community Notes, a user-driven system akin to X’s (formerly Twitter) approach.

Vaidotas Šedys, Chief Risk Officer at Oxylabs, warns that this shift could transform Facebook, Instagram, and Threads into “disinformation battlegrounds,” especially as AI-generated fake news and deepfakes become more prevalent.

Meanwhile, X owner Elon Musk, a close ally of Trump, has been appointed co-leader of the Department of Government Efficiency (DOGE) advisory board, which aims to reduce regulations and promote free speech online.

TikTok ban: A temporary pause

One of the biggest uncertainties in tech policy has been the future of TikTok in the US. The Biden administration had enacted legislation requiring its divestiture or ban, set to take effect in early 2025.

However, Trump signed an executive order to suspend the enforcement of the TikTok ban for over two months, directing the Attorney General not to act on the law while his administration assesses “the appropriate course.”

While an executive order cannot override an act of Congress, Trump’s action suggests a potential negotiation between TikTok’s Chinese parent company, ByteDance, and US officials. Some analysts speculate that Trump might advocate for an American-led buyout of TikTok, similar to his previous attempt in 2020.

AI data centers and the energy crisis

The AI boom demands enormous computational power, leading to soaring electricity needs. Trump’s executive order declaring a “national energy emergency” could facilitate the expansion of power infrastructure, particularly to support AI data centers and cloud computing hubs.

“In an effort to harm the American people, hostile state and non-state foreign actors have targeted our domestic energy infrastructure,” the order states, “weaponized our reliance on foreign energy, and abused their ability to cause dramatic swings within international commodity markets. An affordable and reliable domestic supply of energy is a fundamental requirement for the national and economic security of any nation.”

The executive order paves the way for expedited approvals of new power plants, particularly fossil fuel and nuclear facilities. It could prevent the closure of older power stations, ensuring AI infrastructure has uninterrupted access to power, and aligns with Trump’s broader pro-fossil fuel agenda, contrasting with Biden’s clean energy initiatives.

This move is expected to benefit AI and cloud companies like Google, Amazon Web Services (AWS), and Microsoft Azure, which are investing billions in expanding domestic data centers.

“The policies of the previous administration have driven our Nation into a national emergency, where a precariously inadequate and intermittent energy supply, and an increasingly unreliable grid, require swift and decisive action,” the order continues. “Without immediate remedy, this situation will dramatically deteriorate in the near future due to a high demand for energy and natural resources to power the next generation of technology.”

However, environmental groups have criticized the decision, arguing that it prioritizes fossil fuels over sustainable energy solutions. Some fear that weakening environmental regulations could exacerbate climate risks while prioritizing corporate profits over long-term sustainability.

The US-China tech conflict: Ongoing trade restrictions

Despite the temporary pause on the TikTok ban, Trump’s administration maintains a hardline approach toward China, particularly regarding semiconductors, AI, and telecoms.

The administration continues to enforce export controls on advanced AI chips, limiting China’s access to cutting-edge semiconductor technology. US firms reliant on Chinese manufacturing may need to further diversify their supply chains, raising production costs. Additionally, tensions over Taiwan and its semiconductor industry, particularly TSMC, remain central to US-China relations.

The ongoing US-China technology conflict will continue to influence global IT supply chains, particularly in semiconductors, AI, and 5G infrastructure.

A high-stakes, high-rewards era for technology

Trump’s second presidency has already transformed the technology industry in just a few weeks. His aggressive deregulation agenda, coupled with closer ties to Big Tech, has led to accelerated AI innovation due to reduced risk oversight, social media companies gaining greater freedom while raising misinformation concerns, rapid expansion of AI data centers under the national energy emergency order, a slowdown in EV production as focus shifts back to fossil fuels, and ongoing US-China tech conflicts affecting supply chains.

In any case, industry leaders will be closely monitoring how these policies unfold—and how they will shape the future of AI, cybersecurity, and digital governance under Trump 2.0.