OpenAI Seeks 35% Chips Tax Credit to Apply Towards AI Data Centers
OpenAI has asked the Trump administration to expand the 35% tax credit established under the Chips Act — the 2022 law designed to boost U.S. semiconductor production– to apply to AI data centers, according to a letter dated on October 27 posted online by the company. The company wants the government to make the tax credit available to other components of the chip supply chain, including grid components, AI servers and AI data centers.
In the letter addressed to White House Office of Science and Technology Policy Director Michael Kratsios, OpenAI’s Chief Global Affairs Officer Christopher Lehane also asked the federal government to offer other incentives, such as cost-sharing agreements or loan guarantees, to domestic manufacturers of key inputs for AI chips and data centers, efforts that would ultimately benefit OpenAI as well. The company also wants the federal government to have a reserve of raw materials, such as copper and aluminum, needed for AI infrastructure.
Earlier this week, OpenAI CFO Sarah Friar suggested a federal backstop could support financing AI chips and data centers that could help the U.S. stay competitive globally. Friar and CEO Sam Altman have walked back those comments. Altman said he doesn’t want the government to bail them out if the company fails. “If we screw up and can’t fix it, we should fail, and other companies will continue on doing good work and servicing customers,” Altman said in an X post on Thursday.