Peter Navarro, the Counselor to the US President for Trade and Manufacturing, speaks during a television interview outside of the West Wing of the White House in Washington, DC, on August 21, 2025. AFP
Explainers
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Firstpost19-01-2026, 19:09

US Profiting from Global AI, Not Paying for It: Debunking Navarro's Claims

  • White House trade adviser Peter Navarro claimed Americans are subsidizing AI in India and China, a statement widely debunked.
  • Private American firms like OpenAI, Google, and Microsoft are investing heavily in AI globally, driven by a strategic race for user growth, not charity.
  • AI companies are incurring billions in operating losses due to high infrastructure costs, with only a small fraction of users paying for premium services.
  • US tech firms, investors, and the stock market are the primary beneficiaries of the AI boom, with soaring valuations and market gains.
  • India plays a crucial role in America's AI journey, with a large pool of Indian-origin engineers, a rapidly growing developer community, and significant US tech investments.

Why It Matters: Americans are profiting from the global AI boom through tech firms and investments, not subsidizing it.

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