Top House Republicans are sounding the alarm, alleging that China is actively undermining America’s artificial intelligence infrastructure race by funneling millions of dollars through U.S. tax-exempt organizations to fuel opposition against crucial data center development. In a letter to Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano, House Ways and Means Chairman Jason Smith and House Select Committee on the CCP Chairman John Moolenaar claim that American-born communist tech tycoon Neville Roy Singham has directed substantial funds, totaling $285 million since 2017, to U.S. nonprofits—including groups like the Party for Socialism and Liberation and the ANSWER Coalition, which are described as pro-China communist organizations. These nonprofits, operating with tax-deductible status, are reportedly leading protests and advocacy campaigns against data center construction, citing concerns over electricity costs and water usage, while simultaneously promoting communist regimes. Lawmakers assert that this is not an organic movement but a deliberate tactic by China to ‘throw gasoline on the fire’ and exploit the U.S. tax code and openness to slow American technological advancement, potentially violating rules for tax-exempt organizations and even the Foreign Agents Registration Act. Investigations by OpenAI and the Bitcoin Policy Institute have also highlighted coordinated online campaigns and significant anti-data center activism linked to Singham’s network, raising serious concerns that foreign adversaries are using American systems to sow discord and gain dominance in the critical AI sector.
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