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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.

WATCH: Meta is returning to free speech tradition, says Facebook’s former chief privacy officer Chris Kelly

Meta is returning to free speech tradition, says Facebook's former chief privacy officer Chris Kelly

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The U.S. makes it harder for TSMC, SK Hynix and Samsung to produce chips in China

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The U.S. makes it harder for TSMC, SK Hynix and Samsung to produce chips in China

A 300mm wafer on display at the booth of Taiwan Semiconductor Manufacturing Company during the 2023 World Semiconductor Conference at Nanjing International Expo Center on July 19, 2023, in Nanjing, China.

Vcg | Visual China Group | Getty Images

The U.S. has revoked a waiver that allowed Taiwan Semiconductor Manufacturing Co. to export key chipmaking equipment and technology to its manufacturing plant in Nanjing, China, as Washington continues to ramp up efforts to limit Beijing’s semiconductor advancement.

The change will remove a fast-track export privilege known as validated end user (VEU) status, effective Dec. 31, TSMC confirmed to CNBC on Wednesday.

The world’s largest contract chipmaker had received the exemption soon after the Commerce Department launched its initial restrictions on the sale of U.S.-origin chipmaking tools in 2022.

Under the new policy, shipments of chipmaking tools with American origins to TSMC’s manufacturing facilities in Nanjing, China, will require U.S. export licenses.

“While we are evaluating the situation and taking appropriate measures, including communicating with the US government, we remain fully committed to ensuring the uninterrupted operation of TSMC Nanjing,” the company said. 

South Korean memory chipmakers SK Hynix and Samsung also had their VEU privileges revoked on Friday, according to a statement on the Federal Register. Both companies run China-based memory chip facilities.

At the same time, the Department of Commerce’s Bureau of Industry and Security said in a statement that it was closing the VEU “Biden-era loophole” for all foreign semiconductor manufacturers.

It added that it intends to grant export license applications to allow former VEU participants to operate their existing manufacturing facilities in China, but not to expand capacity or upgrade technology in China. 

Jeffrey Kessler, under secretary of commerce for industry and security, stated that the Trump administration is “committed to closing export control loopholes — particularly those that put U.S. companies at a competitive disadvantage. Today’s decision is an important step towards fulfilling this commitment.”

According to Brady Wang, associate director at Counterpoint Research, the policy changes “reflect Washington’s broader push to tighten control over semiconductor equipment and technology exports to China, strengthening U.S. power over chip production in China,” he said.  

TSMC operates two manufacturing sites in China, one in Shanghai and Nanjing, with the latter facility more advanced. To power its fabrication plants, the company uses hardware from several U.S. chip equipment suppliers, including Applied Materials and  KLA Corp.

However, according to Wang, as TSMC’s Nanjing fab contributes less than 3% of TSMC’s total revenue and represents a minor share of its global capacity, the financial impact on the company “should be minor.”

Renewed crackdown? 

The recent VEU reversals may come as a surprise to some, as they follow the Trump administration’s announcement that it would ease controls on the export of some American artificial intelligence chips. 

Last month, the U.S. said Nvidia and AMD would be allowed to resume exports of some of their previously banned made-for-China AI chips, and signaled that the policy could be expanded.

Prior to that, the administration had also struck down the Biden-era AI diffusion rule, a move that could’ve seen the expansion of export controls on advanced AI chips.

The rollbacks of advanced chip restrictions have been posed by U.S. officials as a way for the U.S. to maintain the supremacy of the AI technology stack globally, including in China. 

However, the removal of the VEU exemptions shows that the same logic is unlikely to be applied to memory and chipmaking technologies. 

According to Ray Wang, research director for semiconductors, supply chain and emerging technology at Futurum Group, the policies show that Washington remains committed to preventing China from boosting its local chip production capacity and cultivating its local know-how and talent. 

“Zooming out, another underlying goal may be to constrain companies’ ability to expand their supply chain footprint in China—particularly in strategic sectors such as semiconductors, which the administration is keen to prevent,” he said. 

Conversely, the Trump administration has been working to attract more of the semiconductor supply chain to the shores of the U.S. through tariff threats.

This year, TSMC, SK Hynix and Samsung have committed new investments into their American manufacturing plans. 

On Monday, shares of SK Hynix and Samsung fell on the VEU news. However, shares of TSMC traded flat on Wednesday after news of its VEU reversal.

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Alphabet stock pops 6% in premarket trading after Google avoids break-up in antitrust case

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Alphabet stock pops 6% in premarket trading after Google avoids break-up in antitrust case

The Google logo is seen outside a building housing Google offices in Beijing on February 4, 2025. China on February 4 said it would probe US tech giant Google over violations of anti-monopoly laws after Washington slapped 10 percent levies on Chinese goods.

Greg Baker | Afp | Getty Images

Alphabet shares rose 6% in premarket trading on Wednesday as investors viewed the result of Google’s antitrust case as broadly favorable to the tech giant.

The U.S. Department of Justice (DOJ) had proposed a sort of break-up of Google, which included divesting its Chrome browser, in an antitrust case that began in September 2023.

While Google was last year found to hold an illegal monopoly in its core market of internet search, U.S. District Judge Amit Mehta ruled against the most severe consequences that were proposed by the DOJ.

Google will not have to divest Chrome. The company can also still make payments to companies to preload products, but it cannot have exclusive contracts that condition payments or licensing.

That means Google will still be able to pay Apple the billions of dollars it does to be the default search engine on iPhones. 

Apple shares were also higher in premarket trade.

Google antitrust case: What the ruling means for Alphabet and Apple

“This is a monster win for Cupertino and for Google its a home run ruling that removes a huge overhang on the stock,” Daniel Ives, global head of technology research at Wedbush Securities, said in a note on Tuesday.

Google has been facing rising competition to its core search business from the likes of Perplexity and OpenAI. But the company has so far fended off challenges with its advertising business still growing.

Google has pinned its hopes of becoming a major artificial intelligence player on Gemini, its suite of AI models and the chatbot that goes by the same name.

“Following today’s announcement, we are increasingly constructive in the longer-term durability of Google’s Search business and are raising our estimates accordingly,” Ives said, adding that he now has a new price target of $245 for Alphabet’s stock.

The ruling also means Google will not have to divest the Android operating system that it develops.

Android is seen as a key tool for Google to increase the number of users for Gemini given that around 70% of smartphones globally run the operating system, giving the U.S. technology giant an existing base of users.

CNBC’s Jennifer Elias contributed to this report.

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Salesforce CEO confirms 4,000 layoffs ‘because I need less heads’ with AI

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Salesforce CEO confirms 4,000 layoffs ‘because I need less heads' with AI

Salesforce CEO Marc Benioff participates in an interview at the World Economic Forum in Davos, Switzerland, on Jan. 22, 2025.

Chris Ratcliffe | Bloomberg | Getty Images

Salesforce has cut 4,000 of its customer support roles, CEO Marc Benioff recently said while discussing how artificial intelligence has helped reduce the company headcount.

Benioff revealed the layoffs during an interview published Friday on The Logan Bartlett Show podcast.

“I’ve reduced it from 9,000 heads to about 5,000, because I need less heads,” Benioff said while discussing the impact of AI on Salesforce operations.

Salesforce has been on the front lines of the AI revolution and has built what it calls an “Agentforce” of customer service bots.

“Because of the benefits and efficiencies of Agentforce, we’ve seen the number of support cases we handle decline and we no longer need to actively backfill support engineer roles,” Salesforce said in a statement Tuesday to NBC Bay Area.

The layoffs come after Benioff over the summer announced AI is doing up to 50% of the work at Salesforce, which is based in San Francisco.

Laurie Ruettimann, a human resources consultant, said AI is affecting jobs in several industries.

“There have been layoffs all over America directly attributed to AI,” Ruettimann said, adding anyone who wants to stay employed or looking for work needs to learn new skills.

“If your network could get you a job, it would have done it already. It would have done it yesterday,” Ruettimann said. “It’s on you to expand your vision, to expand your horizons and to meet new people.”

Analyst Ed Zitron said AI is being blamed by tech companies that over hired during the pandemic. The companies are now looking to lure investors by claiming to be more efficient, Zitron said.

“It’s just a growth at all costs mindset,” Zitron said. “The only thing that’s important is growth, even if it ruins people’s lives. Even if it makes the company worse and provides an inferior product.”

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