Silicon Valley Big Tech companies, which had forged close ties with U.S. President Donald Trump only to face a fierce backlash in the midterm elections, are moving to overhaul their political strategies. They are under pressure from both sides: Democrats have secured control of Congress and are signaling plans to tighten artificial intelligence (AI) regulations, while Republicans are also criticizing the industry and calling for greater distance from tech companies.

Tesla CEO Elon Musk, NVIDIA CEO Jensen Huang, and Google co-founder Sergey Brin stand on stage after receiving medals from U.S. President Donald Trump at the “New Golden Age Summit” held on October 8. Photo: AFP-Yonhap News

Tesla CEO Elon Musk, NVIDIA CEO Jensen Huang, and Google co-founder Sergey Brin stand on stage after receiving medals from U.S. President Donald Trump at the “New Golden Age Summit” held on October 8. Photo: AFP-Yonhap News

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According to the British daily Financial Times (FT) on November 6 (local time), AI companies have been scrambling to respond, including by hiring Democratic-linked figures and signaling their willingness to accept regulation. Big Tech companies provided more than $600 million (about 800 billion won) to Republican campaign groups in this midterm election, but Republicans lost their majorities in both the U.S. Senate and House of Representatives to the Democrats.


After the election defeat, Republicans have increasingly blamed their close ties with Big Tech for the loss. Republican strategist Brendan Steinhauser said, "We need to send the tech industry giants back to Silicon Valley," arguing that the party should sever ties with figures such as Tesla CEO Elon Musk and Nvidia CEO Jensen Huang. Amy Kremer, a pro-Trump activist, also criticized the party, saying, "We gambled our congressional majority on money from giant AI companies and ignored our own voters."


Democrats plan to summon tech company executives to hearings and demand sworn testimony as soon as the new Congress convenes in January 2027. They also intend to investigate the full scope of business activities by Musk and others who hold federal government contracts.


In response, Big Tech companies have moved quickly to reset their relationships with Congress. OpenAI hired Jessica Schumer, daughter of Senate Democratic Leader Chuck Schumer, while Meta and Palantir have also begun hiring lobbyists with Democratic connections. AI companies are also considering renaming "data centers," which have drawn criticism over issues such as power consumption, as "computing campuses." To ease local opposition, they are pledging support for schools, expanded power grids, and environmental protection measures.



However, some say it will be difficult to overcome distrust among politicians and civic groups through these belated image-improvement efforts and conciliatory measures. Shauna Thomas, executive director of Guardrails Alliance, a group that supports AI regulation, said that because of Big Tech companies' longstanding close ties with politicians, any proposals they put forward will face opposition from the outset. "I don't think they've realized this yet," she noted.


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