White House adviser questions why Americans bear cost of AI used in India

ISLAMABAD: White House trade adviser Peter Navarro raised questions over Americans paying for artificial intelligence services used in India in a recent interview with former White House chief strategist Steve Bannon, Indian media reported.

Speaking on the program “Real America’s Voice,” US President Donald Trump’s trade advisor Navarro said it was unfair for Americans to subsidize technology infrastructure that serves large overseas user bases.

“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 elsewhere around the world,” Navarro said during the interview.

His remarks focused on the location of data centers and energy use in the United States, arguing that domestic resources were supporting global demand without sufficient benefit returning to American consumers.

Navarro also raised concerns about foreign purchases of US agricultural land. He claimed overseas buyers were paying prices far above market value, which he warned could fuel higher food costs in the United States.

He said such trends, if left unchecked, could add pressure to food inflation and undermine domestic agricultural interests.

The comments come amid broader trade tensions between Washington and New Delhi, particularly over energy and tariff policies.

Russian oil

According to AFP, India increased its purchases of discounted Russian crude oil following Russia’s 2022 invasion of Ukraine, after Moscow faced sweeping Western sanctions, including restrictions on oil sales. 

US officials, including Navarro, have criticized the move, with the trade adviser previously referring to it as “Modi’s war,” AFP reported. 

In October last year, Trump said that Modi had assured him India would stop buying Russian oil, describing it as a “big step” to increase pressure on Moscow. Indian officials later claimed that assertion, saying no such assurance or conversation had taken place.

Earlier this month, US President Donald Trump said Monday that Indian Prime Minister Narendra Modi was eager to “please” him, while renewing a warning that Washington could further raise tariffs on India over its continued purchases of Russian oil if New Delhi does not “help” address the issue.