Kevin O'Leary and Fox sued over defamation tied to Utah AI data center

Utah political groups Alliance for a Better Utah and Elevate Strategies have filed a federal defamation lawsuit against Kevin O'Leary and Fox News Network. The complaint alleges O'Leary unjustly portrayed the groups as connected to the Chinese Communist Party while promoting the Stratos AI‑focused data center project in Box Elder County, Utah. The plaintiffs cite reputational harm, economic losses, emotional distress and threats to personal safety, seeking trial damages.

O'Leary made the accusations in at least ten media appearances between May 11 and June 3, saying, "These two cells, it's the CPP at work here." Fox later said it corrected the record on each program where his comments aired, and O'Leary posted on Instagram that he had no evidence of Chinese funding for the groups. The lawsuit emerges amid growing opposition to large AI data‑center projects, which raise concerns over water use, environmental impact and utility costs. Stratos could eventually support up to nine gigawatts of AI computing power across tens of thousands of acres near the Great Salt Lake, while a Gallup survey found 70% of Americans oppose an AI data center in their area.