In the United States, a number of IT billionaires are set to join Trump’s administration. Besides Elon Musk, Peter Thiel (PayPal, Facebook) and Ramaswamy (IT billionaire) will also be stepping in. Their role is intriguing: they are being given a free hand with the mission of making the government more efficient. This illustrates that Big Tech is genuinely gaining influence over the governance of the country. These three illustrious figures enjoy the support of other Silicon Valley leaders, although opinions in Silicon Valley are, of course, not entirely unanimous. Silicon Valley is no longer content with merely being a digital and economic superpower of the US or the world but now seeks to influence the governance of the richest and most powerful nation on Earth.
This reflects the ongoing evolution of what I call “the fluid society” a society dominated by global digital systems and networks, where traditional nation-states lose influence in favour of alternative forms of governance. What is happening here?
For several decades now, the impact of digitalisation on daily life has been increasing. Almost imperceptibly, every individual, from rich to poor, young to old, has become wholly dependent on digital systems. Two-thirds of humanity own and use a smartphone with internet access. The largest group among them relies on these systems for their livelihood and daily lives. Big Tech, as a collective term for all the major IT companies that provide and commercialise these systems globally, is effectively a group of digital utility providers and has thereby secured an unchallenged position of power in the world.
In a desperate attempt to regain control, the European Commission has, in recent years, introduced legislation such as the GDPR (General Data Protection Regulation, aimed at protecting personal data), the DMA (Digital Markets Act, aimed at regulating fair and open digital markets), the DSA (Digital Services Act, which imposes obligations on IT suppliers to safeguard citizens’ fundamental rights), and the AI Act (to regulate and protect citizens against the risks of AI systems). But will this rein in Big Tech? Likely not. Firstly, the scope of these laws is, of course, limited to Europe. Secondly, American Big Tech companies, backed by US politicians, have already issued warnings in the event that Europe enforces its regulations too strictly. If that happens, Europe may lose access to certain technologies, or the US may impose other political measures against Europe.
What Can We Expect from Big Tech’s Influence on US Policy? Firstly, these companies naturally have an interest in government contracts and in reducing or minimising regulation. This is unlikely to face any opposition from Trump; on the contrary, he has already promised them as much in exchange for the support he has received. But Big Tech’s interests go beyond this. They aim to sell products and services globally while simultaneously criticising the inefficiency of government, a stance they have maintained for years.
Regarding their global expansion, they are well-placed with Trump. After all, he has a vested interest in making American companies stronger on the global stage. In his trade battles with China and Europe, Trump will undoubtedly seek to strike deals favourable to Big Tech. Europe may be forced to soften its digital legislation or risk falling behind in new technologies. Alternatively, Europe could face “penalties” in other political arenas, such as threats of the US withdrawing its support for Ukraine, exiting NATO, or similar moves. Navigating this situation will be a considerable challenge for Europe, as it has little to offer the US in return, aside from market share for Big Tech. Just as Europe was, until recently, one hundred per cent dependent on Russian gas and oil, it is now entirely reliant on American IT, a fact that has raised no concerns among European politicians.
As for Big Tech’s views on governance, it is clear that these companies, like Trump, have long been frustrated with the large American government, which they perceive as holding society back rather than propelling it forward. It is no coincidence that Musk and Ramaswamy have been assigned to address government efficiency. Musk claims he could save approximately $2 trillion from the total federal budget of $6.5 trillion through the newly created Department of Government Efficiency. Its acronym, DOGE, is a playful nod to the cryptocurrency Dogecoin, which Musk supports.
There is another aspect to consider. Big Tech companies are, of course, motivated by profit. But it is worth remembering that all Big Tech leaders were once idealistic entrepreneurs. They aspired to change the world with their technology, aiming to make life easier and more enjoyable for everyone. And they have delivered. Modern life is unimaginable without the internet, social media, smartphones, and now artificial intelligence. All these technological advancements have rapidly transformed society. Naturally, this progress has also brought negative side effects, such as increased cybercrime, the enormous energy consumption of servers (particularly for AI), and the spread of mass misinformation by bad actors around the globe.
The Influence of Big Tech: A Perspective on Change Management. It will be fascinating to see what the influence of Big Tech will lead to from a “change management” perspective. One might anticipate a completely different form of governance emerging. Just as companies have transitioned from traditional, hierarchical organisations to customer-focused online entities, Big Tech will undoubtedly attempt to transform the American government into an online showcase for citizens, similar to their approach with social media and other systems, aiming to dismantle the traditional, sluggish bureaucratic way of working.
Unquestionably, Big Tech will seek government contracts for all these plans, further expanding their power. It has already been proven that AI can significantly increase efficiency, in some cases by as much as 40%. Whether such gains can also be achieved in bureaucratic environments remains to be seen. Furthermore, Big Tech will likely attempt to position the US as the global leader in cryptocurrency, which could have a significant impact on the financial world.
Externally, the US is the first country where Big Tech has gained high-level influence over national governance and, by extension, society. This will undoubtedly have worldwide implications. Europe lags far behind in this respect, as it lacks both Big Tech companies and top IT leaders within its national governments or the European Commission. Similarly, in China, Big Tech has little influence on national governance. There has been a long-standing tension between companies such as Alibaba, Tencent, and Didi and the Chinese Communist Party (CCP). Chinese Big Tech companies are required to comply with CCP regulations under the threat of severe penalties, including imprisonment.
The alliance between populism (Trump) in the US and Big Tech is an unusual, if not precarious, development. Neither Trump nor Big Tech has much affinity for democracy, which both view as an outdated governance model that has outlived its usefulness. There is a risk that the new Trump administration, in collaboration with Big Tech, will pursue new, less democratic paths, aiming to enhance America’s strength and power at the expense of weaker nations or vulnerable groups within society. Should the US further withdraw from international agreements such as the Paris Climate Accord, the IPCC, NATO, and similar organisations, Europe—and possibly the world—will face significant challenges in maintaining international cooperation for peace, security, and a healthy environment and climate.
The pressing question, however, is how long this unlikely alliance can last in practice, given the narcissistic tendencies of both Trump and figures like Musk. The sustainability of this “monstrous coalition” remains highly uncertain.
