Inside Trump's Systematic Takeover of Silicon Valley: How the Administration is Reshaping Big Tech Autonomy

"I want to thank you for setting the tone such that we could make a major investment in the United States." These words from Apple CEO Tim Cook were addressed to US President Donald Trump during a White House dinner hosting major American tech leaders on September 4, 2025. Among the attendees, AMD's CEO Lisa Su also praised Trump's leadership. Behind these cordial interactions, however, Trump has been pressuring Apple with tariff threats if they continue overseas manufacturing (including in India), while AMD has agreed to share 15% of its China-generated revenues with the US government.

While Big Tech companies maintained a degree of independence during Biden's presidency, Trump's administration has systematically diminished the corporate autonomy of major US tech firms since taking office this year. This shift not only transforms how these companies function within the US but also reconfigures the global technology landscape as these enterprises increasingly become instruments of Trump's economic strategies and pressure tactics directed at both allies and adversaries.

During the Biden administration, tech companies demonstrated significant autonomy. Research published in February 2025 by scholars from Leiden University, Ashoka University and King's College London highlighted how US tech giants such as Microsoft, Google, Apple, Meta, Amazon, Intel, and AMD took actions regarding the Russia-Ukraine conflict that exceeded legal requirements. Intel and AMD restricted even consumer chip sales to Russia, Apple limited online payment capabilities, and Microsoft halted new sales in Russia.

Perhaps the most independent actor was Elon Musk's Starlink, which provided critical internet services to Ukrainian military forces. The researchers attributed Musk's unpredictable decisions regarding Starlink service provisioning to his negotiations with various nations, including the US, Ukraine, Russia, and China. Musk's limitation of satellite internet services to Ukrainian forces at a crucial juncture demonstrated Starlink's significant infrastructural influence.

The Trump administration has implemented various measures steadily eroding tech companies' autonomy. In August 2025, Nvidia and AMD consented to transfer 15% of their China-generated revenues to the US government, effectively becoming government partners. In exchange, the administration relaxed export control restrictions on specialized chips designed for the Chinese market. This arrangement potentially violates constitutional prohibitions on export taxation and contradicts national security concerns that originally justified the export controls.

Furthermore, after initially calling for Intel CEO Lip-Bu Tan's resignation, Trump later expressed approval and announced a 10% government stake in the company. Beyond ownership stakes and revenue-sharing arrangements, the administration has threatened companies with consequences for not investing domestically. Apple faces potential tariffs unless it manufactures in the US, and semiconductor imports have been threatened with steep tariffs absent US investments.

The administration has also extended its influence through the TikTok situation. Rather than enforcing the 2024 law requiring TikTok's ban or sale, Trump repeatedly extended implementation deadlines, with the Justice Department even assuring US tech companies they needn't worry about legal requirements. In negotiating TikTok's future with ByteDance and China, the administration effectively determined which tech companies would participate in the app's US operations.

Additionally, the Justice Department's pursuit of Google's breakup in two separate court cases this year may reflect the administration's desire to control the tech sector rather than genuine concerns about monopolistic practices.

The diminishing corporate autonomy of tech companies will have domestic implications, with firms expected to eliminate "woke" AI and align with the administration's technology agenda. Globally, given US tech companies' dominance across cloud computing, AI, and social media, Trump's restriction of corporate independence will resonate beyond American borders. Companies may struggle to comply with foreign regulations while facing Trump's tariff threats. They might also slow diversification of supply chains from China to developing Asian nations like India and Vietnam.

If the US government continues as both business partner and investment director throughout Trump's term, it will fundamentally alter tech companies' business models and reshape the global technology landscape.

(Lokendra Sharma is a staff research analyst with the Takshashila Institution's High-Tech Geopolitics Programme.)

Disclaimer: These are the personal opinions of the author