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AI Revolution or a Silicon-Valleyist Coup?

Image by Solen Feyissa.

By mid-2025, the United States once again finds itself confronting a political paradox. President Donald Trump—once the central pillar of support for the working class, economic nationalists, and opponents of unchecked globalization—has now become the standard-bearer of policies that appear to align less with the classic MAGA narrative and more with the interests of Silicon Valley and its technology investors. Unconditional backing for the expansion of artificial intelligence, the appointment of powerful tech figures to key positions, rolling back earlier regulations, and opening the floodgates to massive domestic and foreign capital have together triggered a wave of concern and resistance among segments of Republicans and American citizens.

These concerns have now reached a point where observers speak of a deep, structural rift forming within the MAGA movement—a rift with economic, ideological, and security dimensions that could reshape the political landscape of the United States. According to intra-party critics, by endorsing an industry that is transforming the country’s employment, informational, and security patterns more radically than ever before, Trump has drifted away from his original promises and enabled new threats for the middle and vulnerable classes.

The shift in the Trump administration’s AI policies became visible from the very start, marked by the appointment of prominent tech figures to high-level positions. Internal critics argue that these appointments reflect the interests of major corporations rather than the economic needs of the MAGA base. Once policy-makers aligned with Silicon Valley gained influence in the White House’s decision-making structure, priorities changed: protection of traditional jobs gave way to accelerating automation processes, and sensitivity to the social consequences of technology declined. Many state-level Republicans believe this new trajectory is incompatible with the foundational principles of the MAGA movement, which emphasized “bringing opportunity back to American workers.” They argue that rather than adopting a conservative approach toward high-risk technologies, the administration has rushed headlong into embracing an industry whose safety, legal, and regulatory frameworks remain unsettled.

The repeal of previous regulations governing AI development and deployment represents the second axis of this intra-Republican divide. By dismantling much of the prior administration’s regulatory framework, Trump effectively paved the way for broader experimentation and usage of AI systems. Internal opponents contend that without compensatory mechanisms for sectors vulnerable to automation, this policy has intensified anxieties over the job security of millions. They argue that deregulation not only heightens risks related to privacy, algorithmic bias, and data misuse, but also allows large corporations to make decisions whose economic consequences fall disproportionately on workers and service-sector employees. This line of criticism is grounded in the view that the pace of technological growth must not overshadow the need for social protection—and that America’s past demonstrates how unrestrained technological liberalization can deepen economic inequality.

A third point of tension concerns the facilitation of massive capital inflows—especially foreign investment—into the AI sector. By altering investment rules and opening the door to participation by foreign companies and even governments, the Trump administration has effectively established a new model of technological engagement. Many MAGA supporters see this move as incompatible with the nationalist and anti-commodification ethos that characterized Trump’s earlier policies. Critics warn that unrestricted foreign investment could lead to technological dependency and unintended transfers of sensitive capabilities. They also note that the growing presence of transnational consortia in AI makes America’s supply chains and critical infrastructure increasingly vulnerable. From this perspective, unconditional support for foreign capital—even if it accelerates industrial growth—must not come at the expense of long-term security risks, for doing so undermines the movement’s identity and destabilizes its social base.

Beyond the political and economic dimensions, the social dimension of the crisis has also become increasingly pronounced. Public opinion surveys show rising anxiety about AI’s impact on everyday life, privacy, and the future of employment. Public skepticism—already on an upward trajectory in recent years—has now crystallized into structured discontent in response to government policy. Citizens who identify with the MAGA movement believe that the administration, instead of addressing their concerns, has aligned itself with the interests of technology corporations. This feeling of class distance and elite indifference is the very sentiment Trump once leveraged to mobilize his base; yet it has now become an obstacle to his political cohesion. Meanwhile, critics argue that the government has failed to establish a transparent mechanism to ensure corporate accountability in the AI sector, worsening the crisis of public trust.

Taken together, the Trump administration’s AI policies have not only redirected the trajectory of America’s technology-driven economy at unprecedented speed, but have also left profound impacts on the political dynamics of the MAGA movement. Strong support for the tech industry—without offering adequate guarantees for economic and social security—has led many former supporters to view Trump’s early promises to protect vulnerable classes as fading. The appointment of tech-centric figures, the dismantling of protective regulations, and the opening of the gates to foreign capital in such a sensitive sector are, in the eyes of many, inconsistent with MAGA’s foundational principles. These moves have pushed the movement’s internal divide from mere disagreement to a phase of sustained divergence. This divergence is now reflected in overt and covert reactions from Republican lawmakers, rising discontent among MAGA’s social base, and growing distrust toward the administration’s direction.

Recent developments show that the emerging rift is not simply the product of a policy dispute, but rather expresses a structural distance between right-wing populist discourse and the logic of a high-tech economy—a distance that is widening as current policies continue and is now weakening the coalition that once surrounded the president. Under these conditions, artificial intelligence has become not a tool to strengthen the administration’s political standing, but a new fault line shaking the MAGA movement’s internal cohesion—tremors whose consequences are now clearly visible across America’s political sphere.

The post AI Revolution or a Silicon-Valleyist Coup? appeared first on CounterPunch.org.

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