Legacy

The Red Queen's Race

Author

Sean Davis Jr
April 07, 2025

U.S. markets took a massive hit this week as the Trump Administration’s new tariff strategy went into effect. The S&P 500 has seen approximately $5 trillion in losses, and two of the US’ biggest trading partners, China and the European Union (EU) have threatened retaliatory tariffs. Economic pundits are whispering recession. Although tariff news has hovered over the 2025 Q1, the economy is navigating a chain of events that seems unsustainable in the long term. China’s 34% tariff on U.S. goods played a role in the stock selloff last week. However, the People’s Republic also launched an antitrust probe into Alphabet (Google) and instituted a ban on several minerals that are key for advancement in EVs, semiconductors, and renewable energy. The EU on the other hand, is considering a new digital tax on big tech companies. The proposed digital services tax levies fines against Big Tech for revenue generated from specific digital services such as cloud storage and app stores. More specifically, Meta, Apple, Google, Amazon, Intel, and Microsoft. 

But why?

President Trump issued a memorandum detailing the reasons for tariffs on the EU stating that the EU has extorted Big Tech by, “hindering these companies’ success and appropriating revenues that should contribute to our Nation’s well-being, not theirs.” As Big Tech has developed dominance on the global scale, the EU has been the top cop on tech. 

What is Big Tech Doing?

Much of the tech sector has seen significant losses. Big Tech has responded resiliently by working through employee layoffs and doubling its bets on AI projects, including Artificial General Intelligence (AGI), humanoid robots, and quantum computing. Moreover, AI companies are securing investment for data centers and AI factory development. Open AI closed its latest investment round to achieve a $300 billion valuation. For reference, this puts the AI for-profit company at a higher valuation than Chevron Oil company. With majority support from Japan’s Softbank Group, Open AI has taken a significant step towards their Stargate Project, an initiative promising to develop AI advanced data centers across the U.S. Rival, Elon Musk, folded X (Twitter), into xAI which has recently been valuated at $80 billion. These valuations unfolded after President Trump signed an executive order (EO) in January 2025 calling for agencies to rescind all previous AI policies, and regulations that hindered the US’ leadership in AI. The idea is that stringent regulation whether from abroad or at home stifles innovation for Big Tech, which may mean conceding supremacy to our competitors. For Big Tech, innovation equals dominance in the global market along with the increasing impact on US’ economic growth. Subsequently, minority players in the tech sector have also concentrated their focus on AI development, looking to capitalize on the investment wave.

“a nice peace fund idea for people who look like we”

While tariff restrictions continue to strain the global supply chain, minority tech ventures are also securing funding. Melissa Bradley, managing partner of the Black Economic Alliance Fund, recently discussed her firm receiving a $50 million investment to support pre-seed and seed-level startups. Founded in 2021, the fund focuses on four key areas: financial inclusion, health & wellness, sustainable communities, and industry disruptors. In an interview with the Washington Business Journal, Bradley discussed her current approach as the lingering aroma of DEI initiatives has required firms serving underserved founders to keep a low profile. All things considered, Bradley is confident the fund will survive any scrutiny. However, not all funding programs have weathered the storm — Atlanta-based Fearless Fund, faced several legal challenges that forced the firm to end their program for black women entrepreneurs. 

“There was a time America wouldn’t let us ball”

Navigating today’s funding landscape requires innovation. Minority founders, startups, and entrepreneurs’ success hinges on creating systems around the needs of their communities. In today’s turbulent market, business models that are rooted in adaptable and consistent networks show the greatest growth potential. For example, network growth can reach maximum capacity when a business disrupts industry norms. As institutional capital and DEI commitments wane, Black founders have an opportunity to lead in high-impact sectors. Engaging Black Audiences indicates the black community is projected to have a $2.6 trillion buying power come 2026. 

Here, the black community is ripe for (1) digitizing agricultural supply chains, (2) boosting community-owned media/IP and (3) utilizing diaspora fintech services. These industries are not only underinvested but also have scalable, narrative-shifting potential. From digitizing local farming databases to building fintech tools for cross-border payments across the diaspora, there are several tech-based solutions for Black startups to take up. Minority venture firms and entrepreneurs can still build or even cement their legacy by providing comprehensive solutions for their communities and employing their networks to attack problems other firms are unable or unwilling to address.