AI PACs Pour Nearly $1M Into Obscure Senate Race
▼ Summary
– Major super PACs linked to AI labs and investors have contributed nearly $1 million to Republican Mike Rounds’s South Dakota Senate race.
– The funding aims to support Rounds, who is viewed as a key ally for the AI industry amid national debates on regulation.
– Recent polls indicate Rounds holds a significant lead over independent candidate Brian Beng following the Democratic withdrawal.
– South Dakota has recently enacted legislation requiring data center operators to cover more energy and water costs.
– Tech companies are increasing political spending to secure legislative allies as Congress addresses growing concerns about AI safety.
Major political action committees linked to artificial intelligence firms and investors have contributed nearly $1 million to the Senate campaign of incumbent Republican Mike Rounds in South Dakota. This financial push aims to influence a race that is widely considered noncompetitive, even as it intersects with a heated national conversation regarding AI regulation.
Rounds has benefited from approximately $600,000 in outside spending during this election cycle. The bulk of these funds originated from the super PAC Defend American Jobs, which is backed by a vehicle financed by the prominent venture capital firm Andreessen Horowitz. Additionally, FEC filings indicate that Rounds received roughly $215,000 directly from employees and affiliated super PACs tied to major AI laboratories. These contributors include Anthropic, alongside other significant technology giants such as Google and Microsoft.
With less than 50 days remaining until the November midterm elections, recent polling data places Rounds ahead of independent candidate Brian Beng. This lead exists after Democratic nominee Julian Beaudion withdrew from the contest last month. Notably, Rounds has raised more money from technology sector groups than from local donors within South Dakota. This influx of capital highlights a strategic effort by AI companies to utilize substantial financial resources to sway policy discussions on artificial intelligence and the infrastructure required to support it. Industry executives view Rounds as a key ally, a relationship that could prove vital in the upcoming Congress where AI regulation is anticipated to be a primary legislative focus.
The spending spree also underscores how AI labs are prioritizing the retention of political allies. Support for the industry has been scarce on Capitol Hill, where lawmakers are introducing numerous bills in response to growing public concern over AI safety. A spokesperson for Rounds declined to comment when asked about the contributions.
On Thursday, Leading the Future, a super PAC partially funded by OpenAI president Greg Brockman and investors Ben Horowitz and Marc Andreesen, announced plans to invest $2 million in a group of Senate Republicans who support the AI or cryptocurrency sectors. The list of beneficiaries included Rounds.
In South Dakota, the intersection of technology and policy is already tangible. Earlier this year, the state legislature enacted a bill requiring hyperscalers to cover a larger portion of the water and energy costs associated with operating data centers. This issue has sparked intense debate among Republican legislators. In an earlier move, the legislature voted against providing tax breaks for the equipment and software purchases necessary for data center operations, effectively halting construction of a planned development by Applied Digital, a firm specializing in data center design and construction.
While Rounds ultimately endorsed restrictions on data centers, his office noted that his senior aide and former chief of staff, Robert Skjonsberg, works as a registered lobbyist for Meta regarding matters before the South Dakota legislature. Although Meta operates data centers globally, none are currently located in South Dakota. The campaign’s general counsel consulted with the Senate ethics committee regarding this arrangement and was advised that no conflict of interest existed.
Concerns regarding data centers extend beyond party lines across the United States. A recent Gallup poll revealed that seven out of ten Americans oppose the expansion of data centers, citing their heavy consumption of water and energy resources. Local communities frequently end up subsidizing these costs, fueling bipartisan resistance to further development.
(Source: Wired)
