Why’re we paying for AI in India: Trump’s adviser stirs fresh row

US trade adviser Peter Navarro has sparked fresh controversy by questioning why American-developed artificial intelligence services, particularly ChatGPT, are being used extensively in India and other overseas markets despite being operated from the United States.

In an interview with former White House strategist Steve Bannon on Real America Voice, Navarro framed the issue as a trade and energy concern, arguing that AI platforms such as OpenAI’s ChatGPT run on US soil using American electricity while servicing large user bases abroad, including in India and China.

“Why are Americans paying for AI in India? ChatGPT is operating on US soil, using American electricity and servicing large users in India, China and elsewhere,” he said.

Navarro suggested the rapid expansion of AI data centres linked to global usage could be driving up electricity costs for American consumers and hinted that a Trump administration could consider policy measures to address the issue.

The remarks come amid strained US-India trade relations, including a stalemate over a bilateral trade deal and the imposition of steep US tariffs on Indian imports, particularly over New Delhi’s continued purchase of Russian oil. Navarro has previously criticised India’s trade policies, calling it the “Maharaja of tariffs”.

India’s Ministry of External Affairs has previously rejected Navarro’s comments as inaccurate and ill-informed, underscoring that New Delhi’s economic decisions are shaped by market and strategic considerations.