The High-Stakes Influence of Tech Giants in California Politics

By Jeremia Kimelman, CalMatters

As California positions itself for a pivotal election year featuring an open governor’s race, a new analysis reveals that major companies in the realms of artificial intelligence (AI) and cryptocurrency have collectively invested more than $39 million to sway state politics in 2025.

These funds have been allocated toward political campaigns, lobbying efforts, and contributions to nonprofits at the behest of lawmakers. Critics argue that these financial contributions cultivate relationships that undermine legislative integrity, while the companies maintain that their spending aligns with corporate interests and the support of favorable candidates.

Tech Giants Ramp Up Political Spending

In July 2024, Meta—parent company of social media platforms like Facebook and Instagram—made headlines by contributing $20 million to a newly minted political committee aimed at bolstering candidates who favor reduced AI regulations. Shortly thereafter, Meta donated $150,000 to the California Democratic Party and up to $5,900 to 20 incumbents in the state legislature.

Catherine Bracy, founder of TechEquity, a nonprofit advocating for AI regulations, expressed skepticism over the substantial sums spent by tech companies. “They’re on the wrong side of history, and people don’t like them very much,” Bracy pointedly remarked.

In its defense, Meta asserted that its contributions are intended to help elect candidates of any political stripe who champion the American tech industry. The company’s commitment to political funding is significant; last year, it spent nearly $30 million in a concerted effort to gain political favor, including over $25 million directed to 44 separate committees.

Among its various initiatives, Meta and Google jointly invested $5 million into California Leads, a committee entirely funded by the two tech behemoths along with SV Angel, a venture capital firm. By year-end, this committee boasted more than $9.5 million in funds allocated for future elections.

The urgency behind these financial maneuvers stems from the fact that California is currently in the early phases of regulating AI. “These industries are going to pump a ton of money into shaping these policies favorably to their advantage,” stated Sean McMorris from Common Cause California, a nonprofit devoted to government transparency.

As debates surrounding AI regulations intensify, the legislative session has already seen over 50 bills aimed at regulating AI, highlighting a trend that shows no signs of abating.

Lobbyist Spending: Mega-Millions in California

Meta’s aggressive spending on lobbying has reached unprecedented levels, with reports indicating it shelled out at least $4.6 million this year—a stark increase compared to previous years. California, under Democratic supermajority, has emerged as an ideal landscape for AI regulation discussions, especially in light of federal legislative stagnation.

Google is similarly active. Though it reduced its lobbying expenditures to $3.5 million in 2025, its prior spending surged to $10 million as it aimed to quash unfavorable regulations. Other key players like OpenAI and Anthropic—both significant in the AI space—have also debuted in California lobbying, spending $155,000 and $200,000 respectively.

In addition to political donations, tech companies often make behested payments. These are voluntary contributions requested by state officials. Meta reported making 34 behested payments totaling $1.25 million, while Google contributed a relatively modest $10,000 at the behest of State Senator Scott Wiener, who authored legislation imposing requirements on large AI model developers.

Crypto Companies Join the Spending Frenzy

While AI companies monopolize much of the spotlight, the cryptocurrency sector is steadily making its mark on California politics as well. Just two years ago, a cryptocurrency Super PAC spent an impressive $10 million against a Democratic candidate in the U.S. Senate primary.

In 2025, digital currency giants Coinbase and A16Z ramped up their lobbying activities, with expenditures of $200,000 and $300,000 respectively. Notably, Coinbase contributed $155,000 to various campaigns, along with behested payments for the first time, amounting to $95,000.

Such spending underscores a broader trend where the cryptocurrency industry seeks to forge influence in a rapidly evolving regulatory environment.

Unpacking the Implications of $39 Million

While $39 million is indeed a substantial figure, some campaign consultants argue it pales in comparison to the overall political expenditures required for statewide impact in California. However, others view it as a powerful indicator of intent from tech giants striving to shape policy discussions in their favor.

Historically, industries like oil and gas have been top contenders in the California political spending arena. In 2024, fossil fuel companies alone spent nearly $34 million on lobbying, suggesting that the tech and fossil fuel sectors now occupy the same fiscal battleground.

Spending money to lobby and influence legislation is undeniably a tactic aimed at achieving favorable outcomes during regulatory discussions. Experts agree that this strategic financial engagement can have a chilling effect on both elected officials and advocacy groups, presenting a reality where significant funds signal power and influence.

Even in scenarios where companies ultimately lose a legislative battle, their investments continue to impact perceptions and relationships within the political arena, establishing a landscape where financial might translates to political clout.

This article was originally published on CalMatters and is republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.