The aftermath of the midterm elections dealt a severe blow to major technology companies. According to Portfolio, the country’s seven largest tech firms—referred to as the seven master marksmen, including Apple, Nvidia, and Tesla—shed one trillion dollars in market value during a single trading session.
Texas Shift Halts AI Infrastructure
Texas possesses affordable energy resources, so many investors had counted on the fact that in the coming years a significant portion of the United States’ artificial intelligence-related computing capacity would be established in this traditionally Republican state.
Midterm Elections May Trigger New Technology Sector Regulations
The results of the midterm elections could lead to serious policy changes regarding data center development and, more broadly, the entire technology sector.
While individual states and local governments have hitherto sought to react to reservations by introducing moratoria and involving the local population, the newly composed Congress may place on its agenda the review of the previously streamlined approval process for developments, as well as the regulation of non-disclosure agreements, tax preferences, and other related issues.
Corporate Strategy Amid Political Shifts
The artificial intelligence economy consists of three closely intertwined groups.
Elon Musk’s companies—along with others—invested their resources in artificial intelligence, and the new political majority could now undermine this.
The market dominance of large service companies will presumably remain, but if the aforementioned “morganization”—meaning the intensification of ownership concentration—were to occur in the field of artificial intelligence, then antitrust measures such as the dismantling of the ATT telecommunications monopoly in 1984 cannot be ruled out either.