China-Linked Technology Companies Target U.S. AI Companies and Data Centers

Jensen Huang, the CEO of Nvidia, said earlier this year that “AI is no longer a single breakthrough or application — it is essential infrastructure. Every company will use it. Every nation will build it.” And some nations will employ deceptive means to stop their rivals from building it.

According to a new threat report from OpenAI, operators working on behalf of Beijing mounted “covert influence operations that promoted narratives in an attempt to manipulate a legitimate debate about American AI and wider tech policies.” Data centers are a ripe topic for foreign interference. The rapid growth of data centers in the United States is a contentious topic in U.S. domestic politics, with politicians on both sides of the aisle advancing legislation to limit their development due to public fears of potential rising electricity prices, pollution, and other societal risks.

Covert Chinese Networks Fearmonger About Data Centers

OpenAI’s threat intelligence team banned multiple ChatGPT accounts that created English- and Chinese-language content to sway American public opinion against building data centers necessary for AI development and deployment. OpenAI believes that a Chinese technology company contracting for Chinese provincial governments is behind the operation.

The operation created social media comments and images claiming that data center electricity use is leading to increases in the cost of electricity for the average American. Other content engaged in fearmongering that data centers could overload the power grid, leading to blackouts. OpenAI warned that the operation is significant because it reveals Beijing “testing narratives against AI infrastructure — a foundation of US technological leadership, economic growth and the broader democratic AI ecosystem.”

The operation is consistent with past influence operations targeting U.S. technology competition with China. In 2022, China ran covert accounts posing as Texans to encourage opposition to rare earth processing facilities in Texas and Oklahoma.

Congress Pushes for Inquiries

OpenAI’s report is not the only source alleging that China seeks to hobble America’s AI industry. Sen. Tom Cotton (R-AR) requested a Department of Justice investigation into known China-linked propagandists and their attempts to shape U.S. public opinion against data centers.

House Republicans have raised similar concerns that foreign adversaries may be exploiting opposition to U.S. data center development. House Committee on Energy and Commerce Chair Brett Guthrie penned a letter urging the Trump administration to investigate whether China-linked entities are fueling resistance to AI infrastructure.

Washington Should Punish China’s Malicious Activity

The United States should counter China’s influence operations by imposing costs on the actors behind them, especially when those actors are Chinese contractors. Washington should expand efforts to expose and sanction Chinese offensive influence contractors and do the same for Chinese officials who order their services. The Trump administration should also consider other levers, such as further tightening export controls or imposing visa restrictions.

When American companies are the victims of Chinese influence operations, Washington should support U.S. firms by offering them diplomatic support, legal defense, and other protective services. By providing victim companies with intelligence or other information, the U.S. government can also support their efforts to bring civil suits against private Chinese companies involved in these operations.

Ari Ben Am is an adjunct fellow at the Center on Cyber and Technology Innovation (CCTI) at the Foundation for Defense of Democracies (FDD), where he focuses on emerging threats, influence and information operations, cyber operations, and hybrid warfare. Thomas Crehan is an intern at CCTI. For more analysis from the authors and FDD, please subscribe HERE. Follow FDD on X @FDD and@FDD_CCTI. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy.