An AI proxy war could reshape Congress — before Congress reshapes AI
The AI industry is spending tens of millions in midterm elections and on lobbying to influence future AI regulation at both federal and state levels. This includes a "proxy war" between OpenAI and Anthropic, backing opposing candidates and policies, particularly visible in a New York City congressional primary. Data center environmental and economic costs, alongside energy consumption concerns, are among the public issues driving the regulatory debate.
The artificial intelligence (AI) industry is making significant financial contributions to midterm elections and lobbying efforts to shape future AI regulation across the United States. AI-focused super PACs have allocated $43.3 million to congressional races this cycle, aiming to influence legislation as public discomfort grows regarding AI's impact on jobs, energy bills, and society. This intensive political spending is viewed as a novel strategy for industries to exert influence in Washington and state capitals.
A prominent example of this strategy is the New York City congressional primary for New York's 12th Congressional District. State assemblyman Alex Bores, a former Palantir employee, advocates for stricter AI regulation, including New York's Responsible AI Safety and Education Act, which mandates AI companies report safety incidents. This race has attracted over $15 million in AI-backed spending, becoming a battleground where super PACs linked to OpenAI investors oppose Bores's stance, while groups associated with rival AI company Anthropic support him and stronger regulation, highlighting a corporate and ideological divide.
Beyond specific electoral contests, major tech entities such as Meta, Google, OpenAI, and Nvidia are substantially increasing their lobbying expenditures, with a combined total of $50.9 million spent in 2025. This financial push aims to secure the industry's role in crafting federal AI legislation, which has seen stalled progress despite bipartisan agreement on the need for regulation. Critics highlight concerns about AI's impact on employment, the environmental and economic burden of massive data centers, and the concentration of wealth among a few dominant AI companies.
The outcomes of the upcoming primaries and the general election are expected to significantly influence the direction of future AI policy. Lawmakers are grappling with growing public apprehension about the technology, and industry observers suggest that the political spending also serves to deter other candidates who might consider supporting stricter AI regulations.