In the upcoming year, Big Tech’s dominance is expected to come to an end as various entities join forces to support “little tech” against the established giants. Political parties from both sides of the spectrum, mainstream commentators, and even industry leaders like Y Combinator are all in agreement about the need to level the playing field and promote smaller tech companies.
One of the key reasons for Big Tech’s impending failure in 2025 is the decline of the AI industry, in which these companies heavily invested. Major players such as Goldman Sachs and Sequoia Capital are growing increasingly concerned about the enormous costs associated with developing and implementing large-scale AI solutions. They have also raised issues regarding the limited market fit and low returns of the current AI business model.
The downfall of Big Tech can also be attributed to the negative implications of their economic model. Issues such as centralization, surveillance, and information control have become too prominent to be ignored. The dangers of consolidating too much power in the hands of a few corporations were exemplified by Microsoft’s negligence, which led to the CrowdStrike outage in 2024. The impact of this outage was felt globally, with critical sectors like healthcare, finance, and transportation being severely affected.
The public and policymakers are increasingly becoming aware of the risks associated with AI’s reliance on sensitive data, especially at a time when data privacy is a top concern. Platforms like Signal have experienced significant user growth as people seek more privacy-focused alternatives. Concerns about privacy erosion by AI technologies have been heightened by products like Microsoft’s Recall, which aims to track and store users’ activities for the sake of creating a “perfect memory” of their digital interactions. However, this comes at the cost of storing sensitive information that users may not want to share.
Despite these challenges, the erosion of Big Tech’s power is also creating opportunities for alternative solutions that prioritize democracy, independence, openness, and transparency in technology. A growing community of open-source developers, governance experts, and tech industry economists are coming together in Europe to explore the development of autonomous core tech infrastructure.
Financial backers are also beginning to shift their focus towards investing in new paradigms that challenge the status quo. Emerging tech investors are exploring innovative funding models that reject surveillance, social control, and exploitation. Some investors are considering a hybrid approach that combines traditional venture capital incentives with investments in nonprofit tech infrastructure to support a thriving innovation ecosystem.
Government intervention and support are also crucial in fostering a competitive tech landscape. Initiatives like Germany’s Sovereign Tech Fund, which allocates state funds to key open-source projects, demonstrate the potential for public-private collaboration in supporting innovative technologies. By providing resources and funding for critical tech infrastructure, governments can play a pivotal role in nurturing a diverse and dynamic tech ecosystem.
As Big Tech fades into obscurity in 2025, a new era of innovation and creativity beckons. The demise of these behemoths will create space for a more diverse and inclusive tech industry where innovation is driven by the pursuit of societal benefit rather than profit and control. Let us embrace this opportunity to rebuild a more sustainable and equitable IT environment for generations to come.
