Nearly $1 Million from AI PACs Influences South Dakota Senate Race

AI-related political action committees (PACs) have invested nearly $1 million into the Senate race for incumbent Republican Mike Rounds in South Dakota, as reported by Wired. This significant financial input from AI labs and investors highlights a strategic effort to influence key regulatory discussions ahead of the midterm elections.

Senator Mike Rounds has received approximately $600,000 in support from outside groups, with the majority coming from the super PAC Defend American Jobs. This PAC is funded by venture capital firm Andreessen Horowitz. Additionally, Rounds has garnered about $215,000 directly from employees and PACs affiliated with AI labs, including Anthropic, Google, and Microsoft, according to Federal Election Commission filings.

The influx of funds from AI-related sources surpasses contributions from local South Dakota donors, reflecting a broader strategy by AI labs to secure allies in Congress. These allies are seen as crucial as AI regulation is expected to become a legislative priority in the next Congress. Rounds is viewed by AI executives as a top supporter of the industry, which could be pivotal in shaping future AI-related legislation.

A spokesperson for Rounds did not respond to requests for comment. However, the significant financial backing he receives underscores the importance of AI regulation in the current political landscape. The state of South Dakota has already been active in AI-related legislative matters, having passed a bill requiring hyperscalers to cover more of the water and energy costs for data centers.

The South Dakota legislature has been embroiled in debates over data centers, voting against tax breaks for equipment and software purchases needed for these centers. This decision stalled a planned development by Applied Digital, a company specializing in data center construction and design. Despite these challenges, Rounds endorsed additional restrictions on data centers, though his former chief of staff, Robert Skjonsberg, is a registered lobbyist for Meta, which operates a network of data centers.

In a broader context, Leading the Future, a super PAC partially funded by OpenAI president Greg Brockman, announced plans to allocate $2 million to support Senate Republicans who have been favorable to the AI and crypto industries. This list includes Rounds, further highlighting the strategic importance of AI regulation in upcoming legislative sessions.

The involvement of AI PACs in this race is part of a larger trend where tech companies are increasingly engaging in political processes to ensure favorable outcomes for their industries. With fewer than 50 days until the midterm elections, recent polls show Rounds leading against the independent candidate Brian Beng, following the withdrawal of Democratic candidate Julian Beaudion.

What to Watch

• AI Regulation: The role of AI regulation in upcoming legislative sessions and its impact on data centers.
• Political Influence: The influence of AI-related PACs on Senate races and their strategic objectives.
• Local vs. National Interests: The balance between local South Dakota interests and national AI industry goals.