President Donald Trump has formed an increasingly strong alliance with Silicon Valley tech billionaires during his second term, an alliance that prominent right-wing influencer and ex-Trump official Steve Bannon issued a dire warning about Monday ahead of the 2026 midterm elections.
Trump has sought to make the United States the world leader in artificial intelligence, having jumpstarted the initiative during his first week in office with an executive order designed to remove regulatory barriers around AI development. The initiative has seen Trump cozy up to a number of tech billionaires, many of which have either been placed in Trump’s administration or carry a strong influence on Trump’s decision making.
But for Bannon, a former White House chief strategist during Trump’s first term, the president’s reliance on "arrogant" leaders in tech could come back to bite him in the upcoming midterm elections.
“The broligarchs are detested not simply by MAGA but America as a whole – they actually unite the populist left and right,” Bannon told Axios in its report Monday. “The tech bros will be the first to jump ship when the midterm fight turns ugly, as surely it will."
Axios added, "Bannon told us that catering to 'arrogant' Big Tech is a trap for Trump, since such policies will be a loser with his hardcore supporters."
As Trump leans more into AI investment and development, the technology has grown increasingly unpopular with Americans, particularly younger Americans who’ve voiced fears that the technology may replace jobs. Development of AI data centers has also contributed to the spike in electricity costs, with some AI data centers consuming as much electricity as a major city.
The Trump administration has also tried to stop states from imposing regulatory barriers on AI, with a leaked executive order revealing that Trump at least considered trying to withhold federal funds for states that imposed certain AI regulations.
The multi-billion-dollar investments being made into AI have also sparked fears of a market crash, with critics warning that AI technology – the leaders of which have yet to demonstrate a clear path to profitability – could be a “bubble” that could pop at any moment.
“If White House AI and crypto czar David Sacks and others are right that AI juices economic growth and new jobs, Republicans will likely prosper,” read Axios’ report. “But if they're wrong, or the benefits come after a few years of pain, it could be politically catastrophic. That's Bannon's big concern.”