Trump vs Harris: The tech industry’s pivotal role in 2024

US Presidential elections

As the 5 November US presidential election approaches, all eyes are on the tight race between former President Donald Trump and current Vice President Kamala Harris. Polls show the candidates are neck and neck, making voter mobilisation critical for both sides. In this high-stakes environment, the backing of major business groups could be a game changer, with influential figures like Elon Musk stepping into the spotlight.

Musk, the founder of X and one of the world’s wealthiest individuals, has recently rallied support for Trump’s campaign, highlighting the significant role that Big Tech, particularly the so-called ‘Magnificent Seven’, could play in determining the election’s outcome. As both candidates vie for the favour of corporate America, their strategies will likely reflect the growing influence of these business leaders in shaping public policy and voter sentiment.

The Magnificent Seven

The term ‘Magnificent Seven‘ originated with the 1960 Western film The Magnificent Seven, directed by John Sturges. The film follows a group of seven gunslingers, led by Yul Brynner and Steve McQueen, who are hired to protect a Mexican village from bandits. Its legacy spans sequels, a remake in 2016, and cultural resonance, especially for themes of bravery and teamwork.

In finance, The Magnificent Seven is a group of large American tech companies – Apple, Microsoft, Amazon, Nvidia, Meta Platforms, Tesla, and Alphabet. These companies are celebrated for their significant impact on consumer habits, influence over technological advancements, and dominance in the stock market. Holding immense weight in indices like the S&P 500 and NASDAQ, they are seen as critical drivers of market growth and key indicators of economic trends in areas like AI, e-commerce, and social media.

So, it’s quite understandable why the support of these tech giants might be the key to Trump or Harris winning their contested electoral duel.

Trump and tech executives

Top executives from major tech companies are increasingly reaching out to Donald Trump as the presidential election approaches. With polls showing a tight race between Trump and Vice President Kamala Harris, figures like Apple CEO Tim Cook and Amazon CEO Andy Jassy have initiated conversations with the former president. Even Mark Zuckerberg has expressed admiration for Trump following an assassination attempt on him. This shift comes after a tumultuous relationship marked by Facebook’s ban on Trump following the 6 January Capitol riot, a ban that was lifted in 2023.

Trump noted on the Barstool Sports podcast that he appreciates Zuckerberg’s current approach, emphasising that Zuckerberg is staying out of the election. Meta has taken steps to reduce political content on its platforms, including changes to Instagram that limit political recommendations unless users opt-in. Zuckerberg has also stated that he will not endorse any candidates in the 2024 election and plans to avoid significant political engagement. Despite their past conflicts, including Trump’s characterisation of Facebook as an ‘enemy of the people,’ Zuckerberg praised Trump’s resilient response to a recent assassination attempt, calling it ‘badass.’

This comment reflects a complicated dynamic between the two, as Trump claimed Zuckerberg expressed difficulty in voting for a Democrat in the upcoming election. However, Meta denied this, reiterating that Zuckerberg has not indicated any intention to vote or endorse the race.

Elon Musk’s relationship with Donald Trump has seen various phases, reflecting both support and criticism over the past years. Just two years ago, Musk voiced his disapproval of the former president, tweeting in 2022 that it was ‘time for Trump to hang up his hat & sail into the sunset.’ This tweet was in response to Trump publicly calling Musk a liar, accusing him of not being truthful about who he had voted for in past elections. Trump even doubted Musk’s then-pending purchase of Twitter, quipping to a rally crowd, ‘Elon is not going to buy Twitter.’ Of course, Musk did end up buying the platform, now called X, and has since made headlines for his shifting political alliances and increasingly public alignment with issues near Trump’s campaign.

Musk’s stance on US politics was historically more progressive, with nearly exclusive support for Democrats. However, his views on President Biden have notably soured, particularly over unionisation efforts and Biden’s perceived lack of recognition of Tesla’s achievements. Notably, Tesla was not invited to Biden’s 2021 White House electric vehicle summit, despite its status as a major EV manufacturer. Musk’s frustration only grew as his companies have faced federal investigations under the Biden administration, including scrutiny over Tesla’s autopilot feature and his controversial acquisition of Twitter. By 2023, Musk expressed his dissatisfaction with the Biden administration, stopping short of an endorsement for Trump but hinting at his disapproval.

Since taking over Twitter, Musk has shifted noticeably to the right, aligning with Trump on issues like government censorship and criticisms of ‘woke’ ideology. He has lifted Trump’s previous ban on Twitter and frequently shares opinions that echo Trump’s base, from distrust of the media to concerns about unchecked immigration. Political analyst Ryan Broderick suggests that Musk’s stance has transformed drastically since 2018, noting that his earlier, more liberal ‘neoliberal, happy-go-lucky’ messages have given way to tweets that often appeal to the far-right, drawing criticism and sparking debates across the platform.

Trump has responded to this shift with a warmer stance toward Musk. Recently, he praised Musk at a news conference, lauding his patriotism and mutual concern for the country. Musk also seems to have cemented his support for Trump, especially after publicly endorsing him and calling for his recovery following an alleged assassination attempt.

Additionally, Musk has committed $100 million to support Trump, and now, in a move stirring debate, he’s offering $1 million a day to selected voters who sign a petition supporting the First and Second Amendments. This campaign, led by Musk’s America PAC, is focused on registering Trump supporters and has been actively promoting the initiative in Pennsylvania, a key battleground state.

Musk’s financial support and giveaway campaign have raised concerns among election law experts. The PAC requires participants to be registered voters to be eligible for the million-dollar check, which some experts say may cross legal lines. UCLA Law professor Rick Hasen noted that while it is legal to pay people to sign petitions, tying eligibility to voter registration could potentially violate laws against incentivising voter registration.

Kamala Harris and Silicon Valley

On the other hand, Kamala Harris’s presidential campaign has also garnered substantial support from Silicon Valley’s elite, signalling a strong connection between her candidacy and tech industry leaders. Harris’s relationship with Silicon Valley extends back over a decade, partly attributed to her tenure as California’s attorney general and her subsequent role as a US senator. This long-standing connection has led many tech leaders to believe she might adopt a friendlier stance towards the industry than the Biden administration. Notable figures like former Facebook CEO Sheryl Sandberg, LinkedIn co-founder Reid Hoffman, philanthropist Melinda French Gates, and IAC chair Barry Diller are among those supporting Harris, and billionaire Laurene Powell Jobs, Steve Jobs’ widow, has been a close ally since 2013, hosting a fundraiser for Harris that year.

Beyond billionaires, Harris has also drawn support from a broad base of venture capitalists and tech workers. Employees at Alphabet, Amazon, and Microsoft have collectively contributed over $3 million to her campaign. Alphabet workers alone have donated $2.16 million, nearly 40 times their contribution to Trump. Amazon and Microsoft employees have also shown a strong preference for Harris, with their donations amounting to ten and twelve times that of Trump, respectively. While Meta and Apple have not reached the $1 million mark in contributions, their support for Harris also far exceeds what they have given to Trump.

Over 800 VCs have signed a ‘VCs For Kamala’ pledge, and a separate Tech4Kamala letter has gathered more than 1,200 signatures. Among her backers is Steve Spinner, a major Democratic fundraiser who has worked to consolidate Silicon Valley’s support behind Harris, arguing that the majority of the tech industry remains Democratic despite high-profile endorsements of Trump by figures like Elon Musk. Spinner emphasises that ‘for every one person who’s backing Trump, there’s 20 who are backing Kamala,’ dismissing pro-Trump tech figures as outliers in an overwhelmingly liberal industry.

However, this alignment is not without exceptions. David Marcus, former president of PayPal and CEO of the payment company Lightspark, has publicly shifted his allegiance from Democrats to Republicans, criticising what he sees as the Democratic leadership’s ‘hubris’ and its embrace of an ‘increasingly leftist ideology.’ His move underscores a divide within the tech sector, with some executives pulling away from a party they feel is distancing itself from the industry’s priorities.

Tech firms under scrutiny

A key point of focus is the regulatory scrutiny that Big Tech faces under President Joe Biden’s administration, specifically targeting companies like Apple and Google. Biden’s Department of Justice (DOJ) has pursued antitrust actions, arguing that Apple manipulates the smartphone market to limit competition and that Google’s practices resemble those of the AT&T monopoly that was dismantled in the 1980s. This intense scrutiny has created uncertainty for the tech giants, as they face regulatory challenges both at home and abroad, including significant tax penalties imposed by the EU —$14.4 billion for Apple and $2.6 billion for Google.

In older statements, Trump expressed dissatisfaction with Google’s treatment of him, previously calling for maximum-level prosecution against the company for alleged bias. However, he recently noted a shift in Google’s stance, commenting that they appear ‘more inclined’ to support him.

He also mentioned discussing Apple’s European tax rulings with CEO Tim Cook, implying that such regulatory issues would be addressed more favourably under his leadership. Donald Trump has hinted that he might ease this pressure if reelected, suggesting that regulatory hurdles for Big Tech might lessen under his administration.

Trump’s tech policy

Donald Trump’s vision for tech policy includes reducing regulatory barriers to foster innovation and growth. Trump has expressed concern over what he sees as ‘illegal censorship’ by Big Tech, particularly social media platforms, which he claims display bias against conservative viewpoints. The Trump administration previously pursued antitrust actions against tech giants like Google and Meta, and he remains critical of companies he believes unfairly limit free speech online.

Trump’s approach to AI and cryptocurrencies favours a hands-off approach, arguing that the industry should be allowed time to develop without heavy government oversight. His policies suggest he would scale back initiatives such as the electric vehicle challenge and roll back consumer protections implemented under the Biden administration. Trump’s tech policy largely reflects a belief that the market will regulate itself and that minimising government intervention will drive US competitiveness on the world stage. He is also promising favourable policies such as corporate tax cuts.

In general, Trump’s rhetoric suggests a friendlier approach to tech giants, framing his administration as one that would ‘set free’ companies burdened by regulation. This would represent a significant departure from Biden’s approach, which could lead to more extensive oversight, adding another layer of importance to the election’s outcome for these powerful tech companies.

Harris’s point of view

On the contrary, Kamala Harris was appointed by Biden as the AI czar, tasking her with enhancing regulations surrounding AI technology as outlined in his executive order. During her tenure in this role, Harris collaborated with leaders from major tech firms like OpenAI, Microsoft, Alphabet, and Anthropic, emphasising a commitment to prioritising safety over corporate profits. She voiced concerns at the Global Summit on AI Safety last year, asserting that without robust government oversight, tech companies often prioritise profit at the expense of public well-being and democratic stability.

Harris’ approach has also involved data privacy and bias protection, advocating for legislation to mitigate potential harms associated with AI and emerging digital platforms.

A major achievement for the Biden-Harris administration is the CHIPS and Science Act of 2022 which invested in American semiconductor production and tech research and development. This legislation supports clean energy projects and green tech, aiming to secure the country’s tech independence and strengthen national security by bringing more tech manufacturing stateside. Harris’ policies have targeted consumer protection against data misuse and online misinformation, echoing the administration’s interest in strengthening net neutrality and advocating for clearer data privacy laws.

In that sense, experts predict that Harris will largely continue Biden’s current regulatory framework on technology and AI, with only minor adjustments.

However, Harris’s policy positions, particularly on issues crucial to the tech industry such as tax reform, immigration, and antitrust enforcement, remain largely unarticulated, prompting Silicon Valley to tread carefully. Although Harris’s long history in California politics has earned her a base of goodwill, her campaign must address these policy uncertainties to secure substantial financial and strategic backing from an industry navigating the political flux. This balancing act is particularly challenging as she vies to retain traditional Democratic support without alienating a tech sector that remains cautious in light of growing regulatory pressures under the Biden administration.

The future of the tech sector

In conclusion -as technology continues to shape the economy- both candidates’ policies reflect the broader economic vision they hope to achieve. Harris envisions an inclusive, equitable tech landscape where consumer protection and innovation go hand-in-hand, while Trump’s policies prioritise a market-driven model that incentivises growth with minimal intervention. These differences underscore the fundamental contrast in their governance styles and philosophies regarding the role of government in technology.

Ultimately, the next president’s approach to technology will play a crucial role in determining how Americans interact with the digital world, work in an AI-driven economy, and navigate issues of privacy and digital citizenship. As the candidates refine their platforms, voters will face a choice between competing visions of how to guide the nation through a transformative era in technology and innovation.