Tech companies are throwing serious cash at California politics, and it’s only going to get worse. Meta, Google, OpenAI, and crypto firms combined spent over $39 million last year trying to shape how the state regulates artificial intelligence and cryptocurrency. We’re talking about a coordinated effort to influence lawmakers, fund friendly candidates, and donate to nonprofits, all to ensure regulations don’t cut into their profits.

Meta alone dropped nearly $30 million on California politics in 2025. The company created a political committee with $20 million specifically to support candidates who oppose stricter AI regulations. They also contributed $150,000 to the California Democratic Party and handed out cash to individual legislators. Google spent more than $3.5 million lobbying state officials about AI, while OpenAI and Anthropic are new players in this spending game, investing over $200,000 each.

But here’s the thing: these companies aren’t being subtle about it. Meta and Google each threw $5 million into a committee called “California Leads”, which had over $9.5 million in the bank by year’s end to spend on upcoming elections. These moves send a message to lawmakers loud and clear, oppose us and see what happens.

California is basically the only place in America where real AI regulation might actually happen. With Democrats controlling the state legislature and federal gridlock preventing meaningful rules, over 50 AI-related bills are being considered this year. Tech companies know this is their chance to fight back, and they’re willing to spend big money to win.

The cryptocurrency industry is also getting in on the action. Coinbase and A16Z spent record amounts lobbying California last year, dropping $200,000 and $300,000 respectively. Two crypto billionaires have already announced plans to dump tens of millions into state politics, following a pattern they established two years ago when they spent $10 million against Senator Katie Porter.

Experts say this spending creates a chilling effect. Even lawmakers who don’t directly receive money from tech companies feel the pressure when they see massive war chests being deployed. The calculus is simple: it’s way cheaper for companies to buy influence now than to fight regulations later or deal with ballot initiatives they don’t like.

While $39 million sounds massive, and it is, it puts tech companies right alongside the oil and gas industry when it comes to influence spending. Both industries know that when government considers regulating them, it’s time to open the wallet. The real question is whether California’s lawmakers can actually resist this pressure and pass meaningful protections.