Mark Zuckerberg’s announcement this week that Meta would pivot its moderation policies to allow more “free expression” was widely viewed as the company’s latest effort to appease President-elect Donald Trump.
More than any of its Silicon Valley peers, Meta has taken numerous public steps to make amends with Trump since his election victory in November.
That follows a highly contentious four years between the two during Trump’s first term in office, which ended with Facebook — similar to other social media companies — banning Trump from its platform.
As recently as March, Trump was using his preferred nickname of “Zuckerschmuck” when talking about Meta’s CEO and declaring that Facebook was an “enemy of the people.”
With Meta now positioning itself to be a key player in artificial intelligence, Zuckerberg recognizes the need for White House support as his company builds data centers and pursues policies that will allow it to fulfill its lofty ambitions, according to people familiar with the company’s plans who asked not to be named because they weren’t authorized to speak on the matter.
“Even though Facebook is as powerful as it is, it still had to bend the knee to Trump,” said Brian Boland, a former Facebook vice president, who left the company in 2020.
Meta declined to comment for this article.
In Tuesday’s announcement, Zuckerberg said Meta will end third-party fact-checking, remove restrictions on topics such as immigration and gender identity and bring political content back to users’ feeds. Zuckerberg pitched the sweeping policy changes as key to stabilizing Meta’s content-moderation apparatus, which he said had “reached a point where it’s just too many mistakes and too much censorship.”
The policy change was the latest strategic shift Meta has taken to buddy up with Trump and Republicans since Election Day.
A day earlier, Meta announced that UFC CEO Dana White, a longtime Trump friend, is joining the company’s board.
And last week, Meta announced that it was replacing Nick Clegg, its president of global affairs, with Joel Kaplan, who had been the company’s policy vice president. Clegg previously had a career in British politics with the Liberal Democrats party, including as a deputy prime minister, while Kaplan was a White House deputy chief of staff under former President George W. Bush.
Kaplan, who joined Meta in 2011 when it was still known as Facebook, has longstanding ties to the Republican Party and once worked as a law clerk for the late conservative Supreme Court Justice Antonin Scalia. In December, Kaplan posted photos on Facebook of himself with Vice President-elect JD Vance and Trump during their visit to the New York Stock Exchange.
Joel Kaplan, Facebook’s vice president of global policy, on April 17, 2018.
Niall Carson | PA Images | Getty Images
Many Meta employees criticized the policy change internally, with some saying the company is absolving itself of its responsibility to create a safe platform. Current and former employees also expressed concern that marginalized communities could face more online abuse due to the new policy, which is set to take effect over the coming weeks.
Despite the backlash from employees, people familiar with the company’s thinking said Meta is more willing to make these kinds of moves after laying off 21,000 employees, or nearly a quarter of its workforce, in 2022 and 2023.
Those cuts affected much of Meta’s civic integrity and trust and safety teams. The civic integrity group was the closest thing the company had to a white-collar union, with members willing to push back against certain policy decisions, former employees said. Since the job cuts, Zuckerberg faces less friction when making broad policy changes, the people said.
Zuckerberg’s overtures to Trump began in the months leading up to the election.
Following the first assassination attempt on Trump in July, Zuckerberg called the photo of Trump raising his fist with blood running down his face “one of the most badass things I’ve ever seen in my life.”
A month later, Zuckerberg penned a letter to the House Judiciary Committee alleging that the Biden administration had pressured Meta’s teams to censor certain Covid-19 content.
“I believe the government pressure was wrong, and I regret that we were not more outspoken about it,” he wrote.
After Trump’s presidential victory, Zuckerberg joined several other technology executives who visited the president-elect’s Mar-a-Lago resort in Florida. Meta also donated $1 million to Trump’s inaugural fund.
On Friday, Meta revealed to its workforce in a memo obtained by CNBC that it intends to shutter several internal programs related to diversity and inclusion in its hiring process, representing another Trump-friendly move.
The previous day, some details of the company’s new relaxed content-moderation guidelines were published by the news site The Intercept, showing the kind of offensive rhetoric that Meta’s new policy would now allow, including statements such as “Migrants are no better than vomit” and “I bet Jorge’s the one who stole my backpack after track practice today. Immigrants are all thieves.”
Recalibrating for Trump
Zuckerberg, who has been dragged to Washington eight times to testify before congressional committees during the last two administrations, wants to be perceived as someone who can work with Trump and the Republican Party, people familiar with the matter said.
Though Meta’s content-policy updates caught many of its employees and fact-checking partners by surprise, a small group of executives were formulating the plans in the aftermath of the U.S. election results. By New Year’s Day, leadership began planning the public announcements of its policy change, the people said.
Meta typically undergoes major “recalibrations” after prominent U.S. elections, said Katie Harbath, a former Facebook policy director and CEO of tech consulting firm Anchor Change. When the country undergoes a change in power, Meta adjusts its policies to best suit its business and reputational needs based on the political landscape, Harbath said.
“In 2028, they’ll recalibrate again,” she said.
After the 2016 election and Trump’s first victory, for example, Zuckerberg toured the U.S. to meet people in states he hadn’t previously visited. He published a 6,000-word manifesto emphasizing the need for Facebook to build more community.
The social media company faced harsh criticism about fake news and Russian election interference on its platforms after the 2016 election.
Following the 2020 election, during the heart of the pandemic, Meta took a harder stand on Covid-19 content, with a policy executive saying in 2021 that the “amount of COVID-19 vaccine misinformation that violates our policies is too much by our standards.” Those efforts may have appeased the Biden administration, but it drew the ire of Republicans.
Meta is once again reacting to the moment, Harbath said.
“There wasn’t a business risk here in Silicon Valley to be more right-leaning,” Harbath said.
While Trump has offered few specific policy proposals for his second administration, Meta has plenty at stake.
The White House could create more relaxed AI regulations compared with those in the European Union, where Meta says harsh restrictions have resulted in the company not releasing some of its more advanced AI technologies. Meta, like other tech giants, also needs more massive data centers and cutting-edge computer chips to help train and run their advanced AI models.
“There’s a business benefit to having Republicans win, because they are traditionally less regulatory,” Harbath said.
Meta’s CEO Mark Zuckerberg reacts as he testifies during the Senate Judiciary Committee hearing on online child sexual exploitation at the U.S. Capitol in Washington, U.S., January 31, 2024.
Evelyn Hockstein | Reuters
Meta isn’t alone in trying to cozy up to Trump. But the extreme measures the company is taking reflects a particular level of animus expressed by Trump over the years.
Trump has accused Meta of censorship and has expressed resentment over the company’s two-year suspension of his Facebook and Instagram accounts following the Jan. 6 attack on the Capitol.
In July 2024, Trump posted on Truth Social that he intended to “pursue Election Fraudsters at levels never seen before, and they will be sent to prison for long periods of time,” adding “ZUCKERBUCKS, be careful!” Trump reiterated that statement in his book, “Save America,” writing that Zuckerberg plotted against him during the 2020 election and that the Meta CEO would “spend the rest of his life in prison” if it happened again.
Meta spends $14 million annually on providing personal security for Zuckerberg and his family, according to the company’s 2024 proxy statement. As part of that security, the company analyzes any threats or perceived threats against its CEO, according to a person familiar with the matter. Those threats are cataloged, analyzed and dissected by Meta’s multitude of security teams.
After Trump’s comments, Meta’s security teams analyzed how Trump could weaponize the Justice Department and the country’s intelligence agencies against Zuckerberg and what it would cost the company to defend its CEO against a sitting president, said the person, who asked not to be named because of confidentiality.
Meta’s efforts to appease the incoming president bring their own risks.
After Zuckerberg announced the new speech policy Tuesday, Boland, the former executive, was among a number of users who took to Meta’s Threads service to tell their followers that they were quitting Facebook.
“Last post before deleting,” Boland wrote in his post.
Before the post could be seen by any of his Threads followers, Meta’s content moderation system had taken it down, citing cybersecurity reasons.
Boland told CNBC in an interview that he couldn’t help but chuckle at the situation.
“It’s deeply ironic,” Boland said.
— CNBC’s Salvador Rodriguez contributed to this report.
Michael Intrator, Founder & CEO of CoreWeave, Inc., Nvidia-backed cloud services provider, gestures during the company’s IPO at the Nasdaq Market, in New York City, U.S., March 28, 2025.
Brendan Mcdermid | Reuters
Artificial intelligence cloud provider CoreWeave is set to make its Nasdaq debut on Friday. The company priced shares at $40 in its initial public offering on Thursday, raising $1.5 billion.
As a supplier to OpenAI, CoreWeave is among the beneficiaries of the rise of generative AI software such as the San Francisco AI startup’s ChatGPT assistant, which launched in late 2022.
Microsoft provided cloud services to OpenAI but quickly called in CoreWeave, which rents out access to its hundreds of thousands of Nvidia graphics processing units, to provide additional capacity. In 2024, 62% of CoreWeave’s $1.92 billion in revenue came from Microsoft.
Few technology companies have joined stock exchanges since late 2021, when investors became more cautious about inflation, leading central banks to raise interest rates. That in turn made unprofitable companies less attractive.
There were been just 13 venture-backed technology IPOs in 2022, 2023 and 2024, compared with 77 in 2021, according to data from Jay Ritter, an emeritus professor of finance at the University of Florida.
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CoreWeave reported a $863 million net loss in 2024, but it was in growth mode, with revenue growing 737% year over year. It had raised almost $13 billion in debt as of Dec. 31, with much of that allocated for GPUs that go inside the company’s leased data centers in the U.S. and abroad.
The technology industry can now boast the largest U.S. IPO since automation software maker UiPath‘s $1.57 billion New York Stock Exchange debut in 2021. Still, CoreWeave downsized its offering to 37.5 million shares from 49 million and priced below the initial range of $47 to $55 each.
Since CoreWeave filed its prospectus with the Securities and Exchange Commission on March 3, digital physical therapy company Hinge Health and Swedish online lender Klarna have done the same. Discord, which runs popular chat software, has hired banks for an IPO, Bloomberg reported on Wednesday.
CoreWeave’s arrival on Nasdaq might inspire other AI companies to go public, too. An “AI parade” might be on the way, Mark Klein, CEO of SuRo Capital, which invests in private companies, told CNBC earlier.
Data analytics company Databricks, which partly generates revenue by running AI models on behalf of clients, announced a funding round at a $62 billion valuation in December. OpenAI, for its part, was in talks to raise money at a $340 billion valuation as of January.
CoreWeave was founded in 2017 and is based in Livingston, New Jersey, with 881 employees at the end of 2024. Before CoreWeave’s IPO, Michael Intrator, the company’s co-founder and CEO, controlled 38% of its voting power, while Nvidia held 1%. Other investors include Fidelity and Magnetar.
CoreWeave CEO Mike Intrator said Friday that the company’s IPO pricing, which came in below expectations, has to be placed in the larger context of the macroenvironment.
“There’s a lot of headwinds in the macro,” Intrator said on CNBC’s Squawk Box. “And we definitely had to scale or rightsize the transaction for where the buying interest was.”
The company, which provides access to Nvidia graphics processing units for artificial intelligence training and workloads, priced its IPO at $40 a share, below the initial $47 to $55 per share filing. The stock will begin trading on the Nasdaq under the symbol “CRWV.”
The lower price provided enough of a discount to the replacement value that investors could feel comfortable buying, sources familiar with the offering told CNBC’s Leslie Picker. Replacement value is the value of the company’s assets at the present time.
About 10-15 long-only and strategic investors made up the majority of the backing group, the sources said.
“We believe that as the public markets get to know us, get to know how we execute, get to know how we build our infrastructure, get to know how we build our client relationships and the incredible capacity of our solutions, the company will be very successful,” Intrator said.
Nvidia is anchoring the deal with a $250 million order, CNBC reported Thursday.
CoreWeave raised $1.5 billion at the $40 per share price, giving it a non-diluted valuation of around $19 billion.
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Intrator said the company will use the money to pay down debt and for expansion.
The company held nearly $8 billion in debt at the end of 2024.
CoreWeave was also bolstered by the recent market action triggered by DeepSeek, which pushed the company to “build bigger” and “build faster,” Intrator said.
“One of the things that’s made us incredibly effective is we take a really long-term view of where this space is going,” he said.
“Our customers are telling us, universally, to continue to build – we cannot keep up with the scale.”
Intrator also addressed administrative issues with a loan last year in which the company faced technical defaults.
The company started to use money from the $7.6 billion loan for scaling in Europe, The Financial Times reported.
Intrator said the company self-reported the “misstep” in its S-1 and quickly addressed it with the lenders.
“Those lenders proceeded to go ahead and continue to lend us hundreds of millions of dollars after all of these issues,” he said.
A logo hangs on the building of the Beijing branch of Semiconductor Manufacturing International Corporation (SMIC) on December 4, 2020 in Beijing, China.
Taiwan’s Ministry of Justice Investigation Bureau (MIJB) said in a statement that SMIC had used a Samoa-based entity as cover to set up a subsidiary on the island “under the guise of foreign investment” and has been “actively recruiting” talent from Taiwan.
CNBC was unable to independently verify the claims and SMIC was not immediately available for comment.
The ministry said Taiwan began investigating the issue in December 2024. Eleven Chinese enterprises suspected of paoching talent were investigated, it said, with agents conducting searches at 34 locations and questioning 90 individuals.
SMIC is China’s biggest semiconductor manufacturing firm. It was thrust into the spotlight in 2023 when it was revealed to be the maker of the 7 nanometer chip in Huawei’s smartphone at the time. A few years prior, SMIC was put on a U.S. government export blacklist.
China has been trying to ramp up its chipmaking capabilities via SMIC, but the company remains behind competitors like TSMC in Taiwan. Chip export restrictions imposed by the U.S. also mean SMIC is unable to access the latest chipmaking tools from critical suppliers like ASML that could allow it to catch up.
Taiwan is a hotbed of talent in the semiconductor industry as it is home to TSMC, the world’s biggest and most advanced chipmaker. The U.S. has sought to tap into this talent, and bring more chipmaking capabilities to its shores, by convincing TSMC to build more manufacturing capacity in the country.
Taiwan’s MJIB said it set up a special task force at the end of 2020 to investigate allegations of “illegal poaching” of talent.
“Chinese enterprises often disguise their identities through various means, including setting up operations under the guise of Taiwanese, overseas Chinese, or foreign-invested companies, while in reality being backed by Chinese capital, establishing unauthorized business locations in Taiwan without government approval, and using employment agencies to falsely assign employees to Taiwanese firm,” the ministry said.