Key Technology Developments and Political Influences in 2025
In 2025, Elon Musk's influence waned following a controversial June post on X alleging the US president was named in Epstein files, which triggered political upheaval and disrupted government agencies such as USAID. After the collapse of Doge, Musk pivoted his focus back to SpaceX and Tesla. SpaceX continued to grow with prospects of a 2026 IPO, while Tesla faced significant price pressures and a global sales slump amid intensifying competition from China.
Artificial intelligence emerged as the dominant technology sector, with the Magnificent Seven investing hundreds of billions into new software. This investment drove US economic growth but also sparked fears of a market bubble amid the ongoing US–China tech rivalry. The expansion of datacenter infrastructure to support AI transformed the physical landscape, with tens of billions of dollars chasing land, electricity, water, and chip supplies, raising environmental concerns.
In social policy, Australia implemented a groundbreaking ban on social media access for children under 16, making it the first country to launch such a policy and leaving millions of children and teenagers without access. Meanwhile, Silicon Valley sided with Donald Trump in the 2024–25 period, rolling back diversity initiatives and collaborating with ICE. Trump signed an executive order weeks earlier limiting AI regulation.
Donald Trump's inauguration on January 20, 2025, was notable for the presence of prominent tech leaders including Mark Zuckerberg, Jeff Bezos, Sundar Pichai, and Elon Musk seated in the Rotunda ahead of cabinet appointments. Additionally, Peter Thiel delivered a series of leaked lectures about the antichrist, which prompted critical analysis from academics and media following the release of audio leaks.
