Rep. Alexandria Ocasio-Cortez (D-N.Y.) has called on Congress to consider breaking up major tech companies after Apple indicated it might raise prices on cell phones and laptops due to a shortage of processing chips. The New York Democratic Party expressed worries about the immense power these companies wield, suggesting that firms like Apple need stricter regulation and possibly a structural overhaul. This comes amid ongoing challenges in the tech industry, such as supply chain constraints and growing demand for processing chips, largely driven by the surge in AI technologies.
“We need to break up a lot of companies that are too big, and we need to create consumer protections for people,” Ocasio-Cortez noted. She criticized the corporate structures of these tech giants, stating, “The problem we have is that these big companies think they are the government. They want to have power that is totally unchecked.”
Earlier this month, reports indicated that Apple plans to implement price increases across a range of its popular devices. CEO Tim Cook acknowledged the inevitability of these increases, saying, “Unfortunately, price increases are inevitable. While we are doing everything in our power to mitigate the significant price increases… the situation has become unsustainable.”
This shift for Apple is significant. Historically, the company has leveraged its purchasing power to secure favorable prices from suppliers. Cook didn’t provide exact details regarding when or how much prices would rise, or which products would see an increase. However, industry insiders believe that the anticipated iPhone 18 lineup, rumored to include a new foldable model, may be affected. Price changes for the Mac and iPad could happen sooner, particularly after Apple recently increased the starting price of the Mac Mini.
For years, Apple has led the market for processing chips, but the rapid growth of AI has created new competition for these scarce resources. Companies in the AI space are now vying with traditional tech manufacturers for limited processors, which is pushing costs up across the board. This new competition is squeezing Apple’s profit margins, leading the company to consider passing these rising costs onto consumers.
Ocasio-Cortez also underlined the need for Congress to address the wider implications of the AI race, particularly how data centers impact energy consumption. She suggested that current legislation might not be sufficient to tackle these new challenges.
Additionally, she scrutinized the government’s approach to subsidizing AI infrastructure, which seems to lack effective oversight and consumer benefits. “We are subsidizing many parts of AI data centers,” she remarked, implying that taxpayer money is supporting the growth of private industries without adequate protections for consumers.
Wynton Hall, social media director at Breitbart News, forecasted that the Democratic Party will pivot toward a techno-populist strategy as the 2026 midterm elections approach. Hall outlined three key elements of this strategy:
- Persuading Americans that mass job losses from AI are unavoidable.
- Using that fear to generate support for long-term universal basic income (UBI) redistribution.
- Addressing populist concerns about rising electricity and water bills due to AI data centers.
As politicians like Ocasio-Cortez attempt to leverage the techno-populist conversation, it’s essential for the MAGA movement to formulate effective AI policies that serve both the nation and individual families. Hall wrote a book titled Code Red: Left, Right, China, and the Race to Control AI that aims to guide the MAGA movement in establishing a beneficial stance on AI without ceding control to Silicon Valley or allowing foreign powers to dominate.
