Full Breakdown
Lawmakers Claim Chinese-Backed Network Undermines U.S. AI Data Center Development
By Drooid · · How we work
Alleged Influence Operations Targeting AI Infrastructure
House Ways and Means Committee Chairman Jason Smith (R-MO) and House Select Committee on the Chinese Communist Party Chairman John Moolenaar (R-MI) sent a letter to Treasury Secretary Scott Bessent and IRS Chief Executive Officer Frank Bisignano alleging that the Chinese Communist Party (CCP) is using U.S. nonprofit organizations to oppose the construction of data centers essential for artificial-intelligence (AI) infrastructure. The letter asserts that “foreign-directed money” is being laundered through donor-advised funds and shell corporations to finance anti-data-center campaigns.
Legislative Request for a Treasury/IRS Probe
The request also seeks clarification on possible violations of the Foreign Agents Registration Act and on the use of “astroturf” groups that appear grassroots but are allegedly funded by the CCP-linked network.
Reported Funding Flows and Campaign Impact
- A Fox News Digital investigation traced $285 million from tech entrepreneur Neville Roy Singham (American-born) to six U.S. nonprofits since 2017, routed through two shell corporations and a Goldman Sachs-run donor-advised fund that closed the account in 2024.
- The Bitcoin Policy Institute identified 21 anti-data-center campaigns led by the Party for Socialism and Liberation across 14 states, resulting in 10 moratoria, one permanent ban, and four scrapped projects, representing roughly $23.68 billion in proposed investment.
Verbatim Quotes
- “This is the Chinese helping throw the gasoline on the fire,” — Jason Smith, means committee chairman
- “The American people need to know that this is not just an organic movement.” — Jason Smith, means committee chairman
- “Groups that portray themselves as grassroots are really more astroturf — very fake — being funded by entities that are working in partnership with the Chinese Communist Party,” — John Moolenaar, communist party chairman
- “We don’t want foreign entities of concern — countries that may be opposed to American interests — using our system against the American people and trying to manipulate them,” — John Moolenaar, communist party chairman
- “When you see them actively speaking out against American interests and realize that groups like CodePink are aggressively funded by this network, that raises serious concerns,” — John Moolenaar, communist party chairman
These statements and the cited financial data form the basis of the congressional request for greater transparency into nonprofit funding and potential foreign influence over U.S. AI development.