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

OpenAI's Strategic Policy Push

OpenAI has formally requested the Trump administration to significantly expand the scope of the CHIPS Act's Advanced Manufacturing Investment Credit (AMIC), seeking to include AI infrastructure under a tax incentive program originally designed for semiconductor manufacturing. In an October 27 letter addressed to White House Office of Science and Technology Policy Director Michael Kratsios, OpenAI's Chief Global Affairs Officer Chris Lehane outlined a comprehensive proposal to broaden the 35% tax credit beyond chip fabrication facilities 1

1

.

The letter specifically calls for extending AMIC coverage to AI servers, AI data centers, and electrical grid components including transformers, HVDC converters, transmission lines, and the specialized electrical steel used in their production. "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 document 2

2

.

Industry Infrastructure Challenges

The proposal comes amid mounting pressure on AI infrastructure supply chains, with OpenAI identifying critical bottlenecks in power generation and grid components. The company argues that high-voltage transformers, HVDC converters, and transmission lines represent long-lead bottlenecks that merit federal support to reduce delivery times from years to months 5

5

.

CEO Sam Altman has previously stated that the United States will need to add up to 100 gigawatts of new generation capacity annually to support AI growth, nearly doubling current grid expansion plans. This massive infrastructure requirement is exemplified by OpenAI's next-generation data center project, reportedly called "Stargate," which could consume as much as 5 gigawatts of power on its own 2

2

.

Clarifying Government Support Stance

The policy request emerged amid controversy over OpenAI's relationship with government financing. At a Wall Street Journal event, CFO Sarah Friar suggested the government should "backstop" OpenAI's infrastructure loans, comments she later retracted on LinkedIn, clarifying that "OpenAI is not seeking a government backstop for our infrastructure commitments" 1

1

.

Altman reinforced this position, writing that OpenAI does not "have or want government guarantees for OpenAI datacenters" and that "governments should not pick winners or losers, and that taxpayers should not bail out companies that make bad business decisions." However, he distinguished tax credits from loan guarantees, emphasizing that expanded AMIC coverage would benefit the entire industry rather than specific companies 3

3

.

Legislative and Implementation Challenges

Expanding AMIC beyond its current semiconductor focus would likely require Congressional action, as the Treasury Department's discretion in interpreting the law has limits. The current AMIC provides up to 35% tax credits on eligible infrastructure improvements tied to US chip production, finalized by the Treasury Department in 2024 2

2

.

The timing of OpenAI's request coincides with broader industry challenges, including delays in CHIPS Act implementation. Micron, which received $6.1 billion in CHIPS Act funding, recently announced delays in its New York memory chip plant construction until at least 2030, citing labor shortages and extended construction timelines. This delay affects the sole supplier of American-made high-bandwidth memory used in advanced AI accelerators 3

3

.

Financial Projections and Strategic Vision

OpenAI's infrastructure ambitions align with aggressive growth projections. Altman announced expectations to end 2025 "above $20 billion in annualized revenue run rate and grow to hundreds of billion by 2030," with the company making $1.4 trillion in capital commitments over the next eight years 1

1

. The proposed $500 billion Stargate initiative represents a significant portion of this infrastructure investment strategy 5

5

.