OpenAI Pushes for Expanded CHIPS Act Tax Credits to Accelerate AI Infrastructure Development

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 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)