Silicon Valley scrambles to rebuild Democratic ties after midterm losses

Silicon Valley tech billionaires are scrambling to build ties with Democrats after the party's midterm election victories, following their earlier embrace of President Trump. The political shift threatens the AI industry's growth, with voters backing restrictions on data centers in 40 of 41 local referendums. The Nasdaq fell 5.5% on November 5, losing about $2.5 trillion in market value, partly due to concerns over AI investment sustainability. Companies like OpenAI and Meta are now hiring Democratic-linked lobbyists and adjusting policies, while some newly elected Democratic governors have signaled willingness to negotiate on data center projects despite campaign opposition. The tech industry faces scrutiny from progressive Democrats like Elizabeth Warren and Ed Markey, who seek hearings on AI billionaires' political influence. Meanwhile, some Republicans are also distancing themselves from their wealthy supporters, leaving Silicon Valley potentially unwelcome by both parties.