As soon as he was put in office again, President Donald Trump got right to work. Amidst tariffs, talk of interest rates being slashed, Trump also invested $500 billion into an AI project, Stargate. On inauguration day, many tech executive were present, hoping for some good will from the President. Trumps investment in the tech industry and their support for him signals a potential boom in the industry.
Potential Winners of Trump’s Election
In his first week back in the oval office, Trump rescinded some of former President Joe Biden’s regulations on the development and growth of artificial intelligence (AI). This cleared “a path for the United States to act decisively to retain global leadership in artificial intelligence”, which would come alongside some huge profits for major tech companies. Many investors are expecting this, as evidenced by tech stocks increasing rapidly since Stargate was announced.
Another industry likely to do well under Trump is the oil industry. Investopedia edit in chief Caleb Silver said “You’re seeing the drillers do very well in this environment, and the services that support the drilling industry are doing very well now as well.” As a result, Silver said that “you’re seeing investor pull out of – if they haven’t already – green sectors and move them into oil and gas in the fossil fuel sector.”
Potential Downsides
While greater profits are probable in the tech industry, others raise an eyebrow. While AI certainly is the future of technology, many are concerned with the potential ethical implications of developing AI. Former President Biden initially put on regulations in order to make sure AI was developed in a safe way. Now that some of those regulations are out the door, many question the potential weaponization of AI in the future. These concerns, along with China’s recent launch of DeepSeek, make some question if the two countries will clash in an AI war.
Additionally, while big oil companies are likely to do well, the green energy market is likely to take a hit. In addition to greater investment into oil, Trump also is planning on decreasing the green energy credit. This means that fewer businesses and individuals are likely to make pro-environment decisions. Pro-climate individuals seemed to be concerned about that, as fewer pro-environment decisions could increase the rate of climate change. Some argue that climate change can impact home insurance policies, food prices, housing costs, and healthcare.
It’s safe to say that the tech and oil industries will see greater profits, but at the cost of potential ethical and environmental concerns. Time will tell how impactful the pros and cons will be.
Featured Image Credit: Pixabay; Pexels: Thank You!
