Sen. Elizabeth Warren (D-Mass.) is demanding details from tech giants over tax deductions tied to their AI and data-center investments, arguing that Trump-era tax provisions are allowing Big Tech to reduce its tax bills while the federal government faces pressure on social programs.
Warren Targets Big Tech AI Tax Breaks
On Saturday, Warren said in an X post that Meta Platforms Inc. (NASDAQ:META), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google and Microsoft Corp. (NASDAQ:MSFT) are spending billions on AI and data centers while receiving "massive tax breaks" from President Donald Trump and Republicans.
In a video accompanying the post, Warren said the issue had been "totally under the radar" despite the scale of Big Tech’s AI investments.
"People across the country are worried about AI, cyberattacks, and job loss," she said, arguing that Republicans are directing taxpayer dollars toward companies building data centers and developing AI technology.
Warren also questioned how the companies secured the tax benefits.
"We don’t know the magnitude of these tax out. We don’t know what lobbying the companies did to obtain these tax out," she said.
Warren Demands Answers From Big Tech CEOs
Warren said she was pushing Meta CEO Mark Zuckerberg and other technology executives for answers as part of a broader effort to rein in Big Tech.
She also argued that the tax breaks would affect federal finances.
"Don’t forget, these tax out to Meta and Google, they’re not free," Warren said. "Republicans are filling the hole in our budget by slashing health care for millions of Americans."
Democrats Push Back on Big Tech
On Wednesday, Gov. JB Pritzker (D-Ill.) urged lawmakers from both parties to reject the growing political influence of AI and Big Tech companies and prioritize public safety over corporate interests.
Previously, Gov. Tim Walz (D-Minn.) proposed taxing social media platforms with more than 100,000 monthly users to fund workforce training and economic programs addressing AI-related job disruptions.
Sen. Bernie Sanders (I-Vt.) also introduced legislation that would have required major AI companies to contribute 50% of their stock to a federal sovereign wealth fund, which his office projected could eventually reach about $7 trillion.
Meta Faces AI Scrutiny
Earlier this week, Zuckerberg reportedly helped shape Trump’s voluntary AI agreement, drawing criticism from Rep. Ro Khanna over the lack of penalties and oversight.
Meta also reportedly classified some AI data centers as "pilot models" to claim federal tax credits, reducing its 2025 tax bill by $3.9 billion.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Sheila Fitzgerald on Shutterstock.com
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