A defamation lawsuit has been launched against 'Shark Tank' investor Kevin O'Leary following a Fox News appearance in which he claimed Beijing was backing opposition to his proposed artificial intelligence facility in Utah.
Multiple media outlets report that the lawsuit was filed in a Utah federal court on Wednesday by the Alliance for a Better Utah, Elevate Strategies, Gabrielle Finlayson and Josh Kanter.
The filing alleges O'Leary's televised claims caused Finlayson and Kanter severe emotional distress, significant financial damage and reputational harm, whilst exposing them to ongoing threats of physical violence.
Lawsuit Alleges China Claims Caused Serious Harm
The legal complaint states: 'Fox was instrumental in O'Leary's defamatory smear campaign, putting him on air to attack Plaintiffs five times in three weeks. Despite O'Leary's inherently unreliable claims, and his clear lack of support for them, Fox repeatedly invited O'Leary onto its programs and allowed him to broadcast his false accusations to millions of viewers without any qualification.'
Kevin O'Leary just accused China of secretly funding every protest against AI in America.
— Ricardo (@Ric_RTP) May 28, 2026
He says he has the proof and he's handing it to the FBI.
The Shark Tank legend went on Diary of a CEO and dropped some INSANE revelations:
He hired forensic auditors who traced IRS 990… pic.twitter.com/tq4RHviNJy
The filing also highlights roughly 10 media appearances in May and June during which O'Leary repeated the allegations, including the Fox News interview where he described Finlayson and Kanter as 'proxies for the Chinese government'.
Kevin O’Leary says anyone who opposes his dystopian data center is probably working for China. A debate. pic.twitter.com/ZOTunmtMuO
— Tucker Carlson (@TuckerCarlson) May 14, 2026
During a separate appearance on The Tucker Carlson Show, O'Leary again targeted the Alliance for a Better Utah and Elevate Strategies. He claimed the groups were 'taking the content from the CPP [sic], repurposing it, and jamming it down the throats of people in Utah on my social media feed'.
Fox News Vows to Fight the Case
Responding to the legal action, Fox News Media said it had already issued public corrections on every programme in which the 'Shark Tank' star made the remarks, adding that the corrections were widely circulated. The network also said it intends to defend itself vigorously against the lawsuit.
FOX issues an apology: Kevin O'Leary appeared as a guest on the show and discussed the ongoing controversy surrounding his planned data center project in Utah and made claims relating to the opponents of his product.
— Acyn (@Acyn) June 28, 2026
Mr. O'Leary has now corrected the record and explained he has… pic.twitter.com/dh1Y89DPOt
The Marty Supreme star stopped short of issuing an apology in an Instagram update last month, instead offering a clarification of his earlier comments. He said he had no proof linking the Alliance for a Better Utah, Elevate Strategies, Gabrielle Finlayson, Taylor Knuth or Josh Kanter to funding from Beijing.
'I have no evidence that Alliance for a Better Utah, Elevate Strategies, Gabrielle Finlayson, Taylor Knuth or Josh Kanter are funded by China or the Chinese Communist Party,' O'Leary wrote.
O'Leary Admits He Has No Evidence of China Links
At the centre of the dispute is O'Leary's Stratos Project, a data centre complex that could eventually support up to nine gigawatts of AI computing capacity. The proposed development would occupy tens of thousands of acres in Box Elder County, Utah, near the Great Salt Lake.
— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) June 25, 2026
Local residents have pushed back against the project, raising concerns about its potential environmental impact and the long-term strain it could place on regional water resources.
Utah AI Project Sparks Fierce Local Opposition
Tensions over the proposal peaked during a packed public forum on 4 May, when demonstrators jeered local officials, according to the Salt Lake Tribune. After being met with shouts of 'Shame!' and 'Cowards!', the Box Elder County commissioners left the chamber and cast their votes remotely, ultimately approving the resolutions needed to advance the Stratos development.
🚨 KEVIN O’LEARY’S “WORLD’S LARGEST DATA CENTER” JUST GOT APPROVED — AND PEOPLE ARE LOSING IT
— HustleBitch (@HustleBitch_) May 6, 2026
Kevin O’Leary...aka Mr. Wonderful's AI megaproject in Utah just got the green light… despite massive local backlash.
• 40,000 acres (≈ 2.5x Manhattan)
• Estimated 9 GIGAWATTS of… pic.twitter.com/c3TlCxhbLa
Following the political backlash — including election defeats for three officials who supported the project — O'Leary reduced the proposed footprint from 40,000 acres (161.8 km²) to 20,000 acres (80.93 km²), with only half of the land now earmarked for data centres.
