NAIROBI, Kenya- With Donald Trump heading back to the White House, the tech industry finds itself at a crossroads as it grapples with the rapid growth of artificial intelligence, cryptocurrency, and regulation.
In a surprise nod to Silicon Valley, Trump highlighted Elon Musk as a central figure in his tech policy plans, giving Musk and other libertarian “tech accelerationists” a voice in shaping the next phase of U.S. innovation.
So what could this shift mean for an industry on the cutting edge—and on edge over looming regulation?
As artificial intelligence reshapes the tech landscape, Trump’s stance on regulation could drastically alter the U.S. approach.
President Joe Biden’s recent executive order set forth voluntary AI safety standards and privacy protections and established the U.S. AI Safety Institute (AISI) to monitor AI risks.
But Trump is likely to view such oversight skeptically, preferring an open market that lets innovation flourish unhindered.
With Musk—an advocate for AI advancement—slated for influence, Trump could strip back Biden’s regulatory structure, arguing that AI development needs fewer brakes to compete globally.
This laissez-faire approach could delight tech entrepreneurs but worry critics who argue that unregulated AI could threaten data privacy, security, and equity.
Expect big changes in cryptocurrency policy, too. Despite his early criticisms of digital currencies, Trump now supports a hands-off approach that could send the crypto market into overdrive.
During his campaign, crypto moguls heavily invested in his bid, hoping for a crypto-friendly administration.
Notably, bitcoin hit record highs after Trump’s win, surpassing $75,000 in the days that followed. His administration is poised to push for removing Gary Gensler, head of the Securities and Exchange Commission (SEC), known for his skepticism toward crypto.
A new crypto-positive SEC chief could pave the way for rapid growth and fewer regulatory obstacles.
The impact on crypto isn’t just speculative: Trump’s past position reversal on digital assets includes the launch of his own crypto product, suggesting a strong shift in federal policy that could legitimize and stabilize the crypto ecosystem in unprecedented ways.
On the hardware side, Trump is eyeing a reversal of Biden’s CHIPS Act, opting to implement tariffs to coax companies into domestic production over manufacturing subsidies.
While the CHIPS Act aimed to incentivize chip manufacturing in the U.S., Trump’s tariff-based strategy would target companies with overseas operations, particularly in China.
This approach, however, has industry experts like Jack Gold raising concerns, arguing that tariffs alone are insufficient to rebuild U.S. chip production.
Apple could feel the brunt of these policies. With its significant reliance on Chinese factories for iPhone production, Apple stock has remained relatively flat amid broader market gains after Trump’s election.
As tensions escalate, Trump’s policies could force Apple and other tech giants to navigate a turbulent trade landscape, challenging long-held manufacturing strategies.
