Amidst ongoing trade tensions between the United States and India, Peter Navarro, a former White House trade advisor under the Trump administration, has ignited a fresh controversy by questioning why American resources are being used to power artificial intelligence services utilized in India. In an interview with Steve Bannon on "Real America Voice," Navarro claimed that AI platforms like ChatGPT operate on U.S. soil, consume American electricity, and yet serve millions of users in India, China, and elsewhere.
Navarro's remarks, which have quickly gone viral, have been met with criticism for their oversimplified understanding of how global technology platforms function. He stated, "Why are Americans paying for AI in India? ChatGPT operates on US soil and uses American electricity, servicing large users of ChatGPT in India and China and elsewhere around the world". He suggested these issues need to be addressed.
These comments align with Navarro's long-standing protectionist stance on trade and economic nationalism. He has consistently advocated for policies aimed at reducing U.S. trade deficits, often taking a hardline view on countries like China and India. Navarro has accused these nations of unfair trade practices and currency manipulation, calling for more confrontational policies.
Furthermore, Navarro raised concerns about foreign purchases of U.S. farmland, alleging that overseas entities are acquiring agricultural land at inflated prices, which he warned could exacerbate food inflation in the United States. However, he did not provide specific data to support these claims.
This is not the first time Navarro has targeted India with controversial statements. He has repeatedly criticized India's trade and manufacturing policies, often portraying the country as an unfair and hardline negotiator. In the past, he has accused India of fueling Russia's war in Ukraine by buying discounted Russian crude oil, even controversially describing India as a "laundromat for the Kremlin". He has also labeled India the "maharaja of tariffs" and referred to its oil imports as "blood money". Most notably, Navarro's previous remarks invoking a "Brahmin" analogy to characterize India's leadership drew strong condemnation from New Delhi. India's Ministry of External Affairs rejected the comments as "unacceptable" and "ill-informed," stating that such rhetoric undermines mutual respect and ignores the strategic depth of the India-U.S. partnership.
Navarro's recent remarks come at a time of heightened strain in India-U.S. relations. The previous administration imposed steep tariffs on India over its continued imports of Russian oil, and negotiations on a broader trade deal remain deadlocked.
Navarro's focus extends to the broader implications of AI infrastructure, with a particular emphasis on data centers. He stated that the administration is closely examining how the rapid expansion of AI data centers is driving up electricity costs for American consumers. He has signaled that data centers serving global AI demand, including users in India and China, could be the next target of policy action.
