Trump 1.0 vs. 2.0

Trump 1.0 reflects the ideals of the nation-state: politically insulated, economically self-sufficient, and culturally homogenous. While MAGA stalwarts like Steve Bannon, Stephen Miller, and Peter Navarro continue to embrace this vision, "Fortress America” clashes with the new tech faction in MAGA—and the global realities shaping the future.

Silicon Valley’s view is that in the four years since Trump left office, the world has changed. If he still wants a strong industrial base, Trump must confront reality. The factories of the future won’t look like those of the past. Some industries may return, but automation will dominate, and the real economic opportunities lie elsewhere.

That "elsewhere" is tech—especially AI. Today, the world's seven biggest companies are US tech firms with a central focus on AI, and a collective value of $17 trillion. Their idea of Making America Great Again isn’t about reviving old industries—it’s about leading the global AI revolution, which, in turn, will transform traditional industries.

In this view, Trump 1.0 acolytes like Bannon are out of touch. They want to rebuild America around old-style, nationalist industries, like steel mills or auto plants, but AI thrives on global data flows, cross-border computing, and mobile talent. For the tech elite surrounding Trump, "America First" doesn’t mean isolation—it means making America the epicenter of a globally integrated AI economy.

As for Trump, while no one claims he knows a lot about AI, he seems to believe that it is driving a global shift along these lines. That’s why his inauguration included a front row of the world’s most powerful AI CEOs, and why figures like Elon Musk, Peter Thiel, and David Sacks are now key players in his second term. These moguls aren’t there to help revive old-school American manufacturing—they’re focused on making America the undisputed hub of AI dominance.

Global AI Infrastructure—the Build-Out

Over the last week, the world has had a revealing glimpse into how MAGA’s tech faction will change geopolitics in the AI era. Elon Musk, as head of DOGE (Department of Government Efficiency), demanded—and received—unprecedented access to the U.S. Treasury’s $6 trillion payment system, allegedly to permit a “comprehensive review” of the nation’s finances. (He has also received or is seeking access to USAID, NOAA, and The Department of Education.)

While MAGA commentators insist this was just an audit, it was far more of a strategic mapping exercise. Musk wasn’t just reviewing the system—he was identifying where control points exist, where influence can be exerted, and how financial flows can be redirected. The idea is simple: who controls the pipes, controls the money. And by understanding the system’s choke points, he can determine where influence can be applied—whether by pausing payments, restricting access, or rerouting financial resources.

So, while stalwarts like Bannon load MAGA’s blunderbuss with tariffs, walls, and trade wars, Musk is deep inside the digital machinery of government, rewiring the system itself—seeking the leverage mechanisms that define—or redefine—economic power.

This same logic applies to the AI economy. Like the US Treasury, AI infrastructure runs on computing power, data centers, and cloud networks. But control over global AI infrastructure creates leverage over entire industries—and in far more nuanced forms than tariffs. Owning the digital pipes allows America to determine who gets access, who gets restricted, and who gets cut off.

That’s why Musk, Thiel, and the rest of the tech elite aren’t interested in “Fortress America.” AI data centers are the delivery system of the AI economy, and American firms are spending furiously to build a critical mass of them. Their America isn’t a walled-off factory state—it’s a globally integrated digital system, with American lawmakers and firms setting the rules.

The lesson for Canada is that the AI revolution isn’t just about innovation. It’s about who controls the infrastructure that increasingly determines economic and geopolitical power—and what happens to countries that don’t.

Whither Canada?

Silicon Valley and Trump 2.0 have been clear about their intention to “lead” the AI revolution. Now it is becoming clear that the infrastructure required for this leadership will also be a tool of geopolitical power in the AI Age.

From this viewpoint, Trump’s comments about Canada becoming the 51st state look less like taunts or crude ambition and more like a logical next step in America’s transition to the AI Age. Canada’s resources, talent, and infrastructure are simply too valuable to remain outside America’s orbit—it’s emerging sphere of influence.

Fully integrating Canada into the US economy would also help Trump bridge the gap between the two MAGA factions. On one hand, it would bolster Fortress America, securing energy independence and industrial capacity; and on the other, it would ensure Silicon Valley has the resources it needs to dominate the next technological revolution.

In this new North American AI Superpower, Canada wouldn’t be just a trading partner—it would be a strategic asset, a resource hub, and a critical node in America’s AI supply chain. And that puts the question of Canada’s future in a different light.

In a world where the most powerful AI networks, digital grids, and energy systems are American-built and American-run, the question may be less whether Canada’s borders still exist, and more whether they still matter.

Don Lenihan PhD is an expert in public engagement with a long-standing focus on how digital technologies are transforming societies, governments, and governance. This column appears weekly. To see earlier instalments in the series, click here.