- Tucker Carlson challenged Kevin O'Leary on taxpayer funding for his Utah data center project.
- In an interview, O'Leary said the data center will create new jobs that benefit the community.
- O'Leary views the AI race as a geopolitical competition, stressing rivalry with China's tech growth.
Kevin O'Leary and Tucker Carlson clashed over AI, taxpayer subsidies for O'Leary's planned Utah data center project, and China, during a wide-ranging interview published Wednesday.
The "Shark Tank" investor defended the Utah development as a necessary investment in America's AI future, as Carlson questioned why taxpayers should help fund infrastructure that could primarily benefit tech giants like Amazon, Microsoft, and Google.
Carlson repeatedly asked O'Leary why taxpayers should subsidize a private business whose tenants could be "some of the richest companies in the world."
"They don't necessarily have to do that," O'Leary replied, referring to taxpayers, adding that states that don't subsidize such projects "just won't win any contracts. It's a competition."
When Carlson pressed him on tax breaks, O'Leary said incentives are standard practice for major projects. Carlson argued that tax breaks still shift costs onto ordinary taxpayers.
"Why, if it's such a good business, would you be asking taxpayers to help pay for it without giving them equity in the company?" Carlson asked.
The interview comes amid mounting backlash over O'Leary's proposed 40,000-acre Stratos data center project in Utah, which opponents say could strain the state's water and power resources while offering relatively few long-term jobs.
The project, which was unanimously approved by county commissioners, is expected to consume up to 9 gigawatts of energy — more than double Utah's current electricity usage.
O'Leary has dismissed many critics as "professional protesters" and argued that the center will drive significant economic growth and job opportunities in the region, saying it would create jobs and generate tax revenue, comparing it to other manufacturing projects competing for state incentives.
Carlson and O'Leary also sparred in their interview over whether AI will create or destroy jobs. O'Leary argued that new technologies historically create industries that are impossible to predict in advance. Carlson countered that O'Leary's own examples — AI-powered medical scans and photo cataloging — showed machines replacing human labor.
More than a labor issue, the geopolitical battle with China is at the heart of the AI race, O'Leary said.
"Would you prefer all of us that are developing these data centers put down our shovels and stop while the Chinese accelerate theirs?" he asked, saying the US and its allies need to expand power generation and data-center capacity or risk falling behind Beijing technologically and militarily.
Carlson remained skeptical of taxpayer-backed incentives for billion-dollar AI projects, arguing that states were transferring wealth from ordinary taxpayers to some of the country's richest companies.
"Welcome to America, buddy," O'Leary replied. "This is how it's gone on for 200 years."
O'Leary is a Canadian citizen.
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Katherine Tangalakis-Lippert is a senior reporter on Business Insider's West Coast team. When she's not writing about trending business and tech news, from the latest supply chain snarls or advancements in AI, she covers the food and restaurant industries, specifically companies such as Starbucks and McDonald's.Some of her prior areas of focus have included coverage of the Supreme Court and emerging technologies such as quantum computing.Katherine has worked on award-nominated projects and has appeared on Good Morning America, NBC, CNN, and other outlets to discuss her reporting.Prior to joining Business Insider, she covered retail, hospitality, and nonprofits at the San Fernando Valley Business Journal and received a master's degree in investigative reporting from the University of Southern California.Reach outDo you have feedback or a story tip? Contact Katherine on Signal at byktl.50, or email her at [email protected].Follow her on Twitter and Instagram @scrawlgirl.Some of her recent scoops, exclusives, and original stories include: Starbucks set up a new office. It's a 5-minute drive from the CEO's California home.Inside Starbucks' crackdown on cup notesEndless Shrimp was Red Lobster's rock bottom. Now it's clawing back.Chipotle's new PAC signals a change in how the company engages in politicsKFC lost its footing in the Chicken Wars. Now it's gunning for a 'Kentucky Fried Comeback.'A few other highlights include: Clarence Thomas raised him 'as a son.' Now he's facing 25-plus years on weapons and drug charges.Call her Ivanka Kushner'Maybe I'll just resign:' Federal workers react to DOGE productivity emailSpaceX launches cause late-night booms that rattle windows, set off car alarms, and may damage property. Locals are pushing back.The US-China tech race is moving from chips to the raw materials they're made of
