OpenAI Pushes for CHIPS Act Expansion to Cover AI Infrastructure as Industry Seeks Government Support

OpenAI asked Trump administration to expand Chips Act tax credit to cover data centers | TechCrunch

A recent letter from OpenAI reveals more details about how the company is hoping the federal government can support the company's ambitious plans for data center construction. The letter -- from OpenAI's chief global affairs officer Chris Lehane and addressed to the White House's director of science and technology policy Michael Kratsios -- argued that the government should consider expanding the Advanced Manufacturing Investment Credit (AMIC) beyond semiconductor fabrication to cover electrical grid components, AI servers, and AI data centers. The AMIC is a 35% tax credit that was included in the Biden administration's Chips Act. "Broadening coverage of the AMIC will lower the effective cost of capital, de-risk early investment, and unlock private capital to help alleviate bottlenecks and accelerate the AI build in the US," Lehane wrote. OpenAI's letter also called for the government to accelerate the permitting and environmental review process for these projects, and to create a strategic reserve of raw materials -- such as copper, alumimum, and processed rare earth minerals -- needed to build AI infrastructure. The company first published its letter on October 27, but it didn't get much press attention until this week, when comments by OpenAI executives prompted broader discussion about what the company wants from the Trump administration. At a Wall Street Journal event on Wednesday, CFO Sarah Friar said the government should "backstop" OpenAI's infrastructure loans, though she later posted on LinkedIn that she misspoke: "OpenAI is not seeking a government backstop for our infrastructure commitments. I used the word 'backstop' and it muddied the point." CEO Sam Altman also weighed in, writing that OpenAI does not "have or want government guarantees for OpenAI datacenters." "We believe that governments should not pick winners or losers, and that taxpayers should not bail out companies that make bad business decisions or otherwise lose in the market," he wrote, though he said the company had discussed loan guarantees "as part of supporting the buildout of semiconductor fabs in the US." In the same post, Altman wrote that the company expects to end 2025 "above $20 billion in annualized revenue run rate and grow to hundreds of billion by 2030," and he said OpenAI has made $1.4 trillion in capital commitments for the next eight years.

OpenAI asks U.S. to expand CHIPS Act tax credit to cover AI infrastructure despite firm's denial wanting a government 'backstop' for its massive loans

Policy filing urges inclusion of AI servers, data centers, and grid hardware under semiconductor subsidy. OpenAI has asked the Trump administration to expand a major CHIPS Act tax credit to support the build-out of AI infrastructure, including servers, data centers, and power systems. The company submitted the proposal in October as part of the Office of Science and Technology Policy's public consultation on long-term AI policy, according to a policy document posted online by OpenAI. At issue is the Advanced Manufacturing Investment Credit (AMIC), a 25% investment tax credit created under Section 48D of the Internal Revenue Code. Finalized by the Treasury Department in 2024, the credit currently applies to capital expenditures related to semiconductor manufacturing and tooling. OpenAI is urging the administration to broaden that scope, arguing that the same incentive should apply to domestic production of AI servers, as well as to the construction of AI data centers and supporting grid infrastructure. The company frames the expansion as a way to lower the cost of capital for U.S.-based AI infrastructure, accelerate deployment timelines, and strengthen supply chains that are already under pressure. The filing specifically calls out high-voltage transformers, HVDC converters, and transmission lines as long-lead bottlenecks that merit federal support. It also recommends additional grants, loans, and loan guarantees to ensure critical components are manufactured at a sufficient scale. OpenAI's request comes amid a broader industry scramble to secure power, hardware, and real estate for large-scale inference clusters. CEO Sam Altman has previously said the U.S. will need to add up to 100 gigawatts of new generation capacity to support AI growth, nearly doubling current grid expansion plans. The company's next-generation data center project, reportedly dubbed "Stargate," could draw as much as 5 gigawatts on its own. Although the Treasury Department has discretion in interpreting the law, AMIC's current scope is defined by Congress. Expanding the tax credit to cover data centers and AI systems would likely require legislative action. That hasn't stopped industry leaders from lobbying for broader eligibility, particularly as the U.S. tries to keep pace with infrastructure expansion in China and the Gulf states. The push for tax credits is separate from the discussion around federal loan guarantees. After public backlash over reports that OpenAI had explored government support for its own operations, Altman clarified that the company had sought only guarantees from semiconductor manufacturing partners. The policy filing does not request direct subsidies to OpenAI and instead outlines measures that could benefit U.S. AI infrastructure more broadly.

Altman wants to extend CHIPS Act tax breaks to AI infra

We can't let supply chain shortages burst the bubble boy's balloon Free money is always better than a loan! OpenAI CEO Sam Altman recently said he doesn't want government-backed loans to fuel his AI ambitions, but he's more than okay with the idea of Uncle Sam handing out tax credits under the US CHIPS Act to subsidize AI server production, bit barns, and grid components. Posting on the social network formerly known as Twitter on Friday, the AI hype fiend said that the US had previously played a role in critical infrastructure build-outs and emphasized the importance of securing domestic chip production, adding that it shouldn't stop there. "We think US reindustrialization across the entire stack - fabs, turbines, transformers, steel, and much more - will help everyone in our industry, and other industries (including us)," Altman's X post read. Altman's comments come just days after OpenAI's Chief Global Affairs Officer Chris Lehane penned [PDF] a letter to the White House highlighting key strategic bottlenecks including access to adequate power and calling on the administration to expand the Advanced Manufacturing Investment Credit (AMIC) to incentivize not just US chip production but servers, datacenters, and grid improvements as well. As of July, the AMIC -- passed as part of the US CHIPS Act -- provides up to 35 percent tax credit on eligible infrastructure improvements tied to US chip production. For Altman, a tax credit is a far cry from a government-backed loan. This is "super different from loan guarantees to OpenAI," he wrote. "It would be good for the whole country, many industries, and all players in those industries." The idea that OpenAI might want government-backed loans to finance its journey to the artificial general intelligence (AGI) promised land has sparked no shortage of controversy. On Wednesday, CFO Sarah Friar suggested that a federal "backstop" would open the door to additional financing while speaking at the WSJ Tech Live event. Friar later walked back her comments, clarifying that OpenAI wasn't seeking loan guarantees itself, a point that Altman felt compelled to emphasize in a lengthy X post. "We believe that governments should not pick winners or losers, and that taxpayers should not bail out companies that make bad business decisions or otherwise lose in the market." It's worth noting, however, that regardless of whether it's a federally guaranteed loan or a tax credit, anything that benefits OpenAI's partners is in the model dev's interests. Altman's $500 billion Stargate bit barns initiative is going to run into roadblocks eventually if there aren't enough chips, servers, or power to support them. Therefore, anything that Uncle Sam does to incentivize investments in these areas keeps the stream of hot air flowing into the AI bubble for a little while longer. Unfortunately for Altman, the cracks in this grand plan may be starting to show. Also on Friday, Micron, which was awarded $6.1 billion in funding under the CHIPS Act last year, revealed it was delaying construction of its memory chip plants in Clay, New York, until at least 2030. Micron is the sole supplier of American-made high-bandwidth memory (HBM) used in Nvidia and AMD's most powerful accelerators. The delay, first reported by the Syracuse Post-Standard, will also see Micron reallocate about $1.2 billion of its CHIPS Act winnings to its fab expansion in Idaho. While Micron didn't offer much detail as to the reasons for the delays, the paper cited Ryan McMahon, a local county official, as saying that labor shortages and longer-than-expected construction timelines may have impacted the plans. The Register reached out to Micron for comment; we'll let you know if we hear anything back. ®

OpenAI Asks US to Expand Chips Act Tax Credit to AI Data Centers

OpenAI has asked the Trump administration to revamp a Chips Act tax credit to help lower the cost of artificial intelligence infrastructure, as the startup explores additional ways the US government can support an industrywide data center build-out for AI. In a letter last week to White House Office of Science and Technology Policy Director Michael Kratsios, OpenAI Chief Global Affairs Officer Chris Lehane suggests the administration work with Congress to expand a 35% chips-focused tax credit to AI data centers, AI server producers and electrical grid components, such as transformers and the specialized steel used to produce them. The letter is dated Oct. 27, according to a copy posted online by the company.

OpenAI calls for CHIPS Act tax credit to be extended to AI data centers - SiliconANGLE

OpenAI calls for CHIPS Act tax credit to be extended to AI data centers OpenAI Group PBC has asked the White House to make a tax credit for chip fabs available to artificial intelligence data center builders. Bloomberg reported the request today. OpenAI asked for the tax credit and several other AI industry incentives in a Oct. 27 letter to Michael Kratsios, the policy director at the White House Office of Science and Technology. The document was penned by Christopher Lehane, the AI provider's Chief Global Affairs Officer. The 2022 CHIPS and Science Act made $280 billion worth of financing available to the U.S. semiconductor industry. Grants make up about a fifth of the sum, while the remainder takes the form of other incentives. Those other incentives include a tax credit known as AMIC. It provides a 35% tax rebate for investments in chip fabs and factories that make semiconductor manufacturing equipment. OpenAI's letter asks the White House to significantly expand the scope of AMIC. In particular, the ChatGPT developer proposes to make the 35% rebate available for AI data centers and AI server makers. OpenAI would be among the largest beneficiaries of such a move: the company plans to build $500 billion worth of AI data centers in the coming years. The AI provider argues that AMIC should also be made available to electrical grid component suppliers. According to OpenAI, the list of eligible components should include transformers and the so-called electrical steel from which transformers are made. Standard steel is made of iron and carbon. The electrical version replaces carbon with silicon, which reduces the amount of energy that is lost on its way from the power plant to end-users. "Broadening coverage of the AMIC will lower the effective cost of capital, de-risk early investment, and unlock private capital to help alleviate bottlenecks and accelerate the AI build in the US," Lehane wrote in the latter. OpenAI proposes that the U.S. government also introduce other incentives for the AI sector. The company says those incentives could include grants, cost-sharing agreements, loans and loan guarantees. OpenAI argues that the financing should be made available to, among others, suppliers of copper, aluminum, electrical steel and rare earth elements. "Direct funding could also help shorten lead times for critical grid components -- transformers, HVDC converters, switchgear, and cables -- from years to months," Lehane wrote. OpenAI sent the letter to the White House shortly before Sarah Friar, its Chief Financial Officer, suggested the government could "backstop the guarantee that allows the financing to happen" in AI data center deals. She walked back the comments earlier this week. White Office officials indicated that backstopping AI infrastructure loans is not under consideration. OpenAI's 11-page letter also includes various other requests. The company is proposing that the government create a strategic reserve of the raw materials needed to make AI systems. Additionally, OpenAI argues that the U.S. should add 100 gigawatts of power generation capacity every year.

OpenAI's Altman urges US to expand Chips Act tax credit for AI growth

OpenAI CEO Sam Altman on Friday doubled down on the company's ask for the US to expand eligibility for a Chips Act tax credit, as the country accelerates efforts to secure its position as a global leader in artificial intelligence. Altman's comment follows OpenAI Chief Global Affairs Officer Chris Lehane's October 27 letter to the White House Office of Science and Technology Policy Director Michael Kratsios seeking an extension of eligibility for the Advanced Manufacturing Investment Credit (AMIC) to AI server production, AI data centers and grid components. The AMIC is a US federal tax incentive designed to boost domestic semiconductor manufacturing. "We think US re-industrialisation across the entire stack - fabs, turbines, transformers, steel, and much more - will help everyone in our industry, and other industries (including us)," Altman said in a post on X on Friday. But the tax credit is "super different than loan guarantees to OpenAI", Altman said. The company has spoken with the US government about the possibility of federal loan guarantees to spur construction of chip factories in the US, but not data centers, Altman had said earlier this week. OpenAI has committed to spend $1.4 trillion building computational resources over the next eight years, he had said. Booming demand for AI models and products, including OpenAI's widely used ChatGPT, has prompted leading tech companies to unveil ambitious plans for building more data centers and developing advanced chips.David Sacks, the White House AI and crypto czar, however, had said there would be no federal bailout for AI.

OpenAI Continues to Push for Government Help in AI Growth | PYMNTS.com

In a post on the social media platform X, Sam Altman pushed the federal government to expand eligibility for a Chip Act tax credit. "We think U.S. re-industrialization across the entire stack -- fabs, turbines, transformers, steel, and much more -- will help everyone in our industry, and other industries (including us)," wrote Altman, whose comments were flagged in a report by Reuters. However, Altman added, the tax credit is "super different than loan guarantees to OpenAI." Reuters noted that Altman's comment follows OpenAI Chief Global Affairs Officer Chris Lehane's letter to the White House last month looking for an extension of eligibility for the Advanced Manufacturing Investment Credit (AMIC) to artificial intelligence (AI) server production, AI data centers and grid components. Meanwhile, OpenAI Chief Financial Officer Sarah Friar said last week that a federal guarantee could reduce the cost of financing for chip investment. "I think the U.S. government in particular has been incredibly forward-leaning, has really understood that AI is almost a national strategic asset and that we really need to be thoughtful when we think about competition with, for example, China," Friar said. "Are we doing all the right things to grow our AI ecosystem as fast as possible?" The Reuters report added that surging demand for AI models and products, OpenAI's widely used ChatGPT, among them, has led tech companies to roll out ambitious plans for building more data centers and advanced chips. But David Sacks, the White House AI and crypto czar, has said the government has no intention of bailing out the AI sector. In other AI news, PYMNTS wrote last week that while the markets are concerned about the sky-high valuations of AI companies, CFOs are increasingly focused on the technology's deployment. The evolution of AI in payments, that report noted, began across existing use cases, with models woven into fraud detection, invoice matching and risk scoring. At first, these tools rested within well-understood parameters: "assistive" solutions aimed at helping human analysts spot anomalies in sprawling datasets. "But real gains are beginning to materialize as AI crosses over into proactive, and predictive, territory," the report said. "Seen through the chief financial officer ... lens, AI's capacity to improve financial outcomes falls into three broad categories: operational, strategic and relational."

OpenAI requests US expand CHIPS tax credit to cover data centers and accelerate permitting

OpenAI (OPENAI) has requested that the U.S. government expand a tax credit related to the CHIPS Act to cover data center infrastructure parts and accelerate related regulatory processes. The request came in the form of a letter sent by Chris OpenAI argues expanding these credits would lower capital costs, reduce investment risk, and unlock private capital, accelerating the buildout of AI infrastructure. OpenAI is seeking a speedier permitting process under environmental regulations and acceleration of approvals for AI infrastructure projects like transmission lines. OpenAI's internal analysis predicts a $1 trillion investment in AI infrastructure could boost GDP by 5% or more in the first three years.

OpenAI's Altman urges US to expand Chips Act tax credit for AI growth

(Reuters) -OpenAI CEO Sam Altman on Friday doubled down on the company's ask for the U.S. to expand eligibility for a Chips Act tax credit, as the country accelerates efforts to secure its position as a global leader in artificial intelligence. Altman's comment follows OpenAI Chief Global Affairs Officer Chris Lehane's October 27 letter to the White House Office of Science and Technology Policy Director Michael Kratsios seeking an extension of eligibility for the Advanced Manufacturing Investment Credit (AMIC) to AI server production, AI data centers and grid components. The AMIC is a U.S. federal tax incentive designed to boost domestic semiconductor manufacturing. "We think U.S. re-industrialization across the entire stack -- fabs, turbines, transformers, steel, and much more -- will help everyone in our industry, and other industries (including us)," Altman said in a post on X on Friday. But the tax credit is "super different than loan guarantees to OpenAI", Altman said. The company has spoken with the U.S. government about the possibility of federal loan guarantees to spur construction of chip factories in the U.S., but not data centers, Altman had said earlier this week. OpenAI has committed to spend $1.4 trillion building computational resources over the next eight years, he had said. Booming demand for AI models and products, including OpenAI's widely used ChatGPT, has prompted leading tech companies to unveil ambitious plans for building more data centers and developing advanced chips. David Sacks, the White House AI and crypto czar, however, had said there would be no federal bailout for AI. (Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar)