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

In a recent communication, OpenAI has outlined its vision for enhancing AI infrastructure in the United States, appealing for federal support to facilitate its ambitious data center projects. The letter, penned by Chris Lehane, OpenAI’s chief global affairs officer, was directed to Michael Kratsios, the director of science and technology policy at the White House. Lehane's correspondence emphasizes the need for the government to broaden the scope of the Advanced Manufacturing Investment Credit (AMIC). Currently, this 35% tax credit, part of the Biden administration’s Chips Act, primarily targets semiconductor manufacturing. OpenAI suggests expanding it to include essential components for electrical grids, AI servers, and data centers dedicated to artificial intelligence. The company believes that extending the AMIC would significantly lower capital costs, reduce investment risks, and attract private funding to alleviate current bottlenecks in AI development across the nation. In addition to advocating for tax credit expansion, OpenAI's letter calls for a streamlined permitting and environmental review process for these critical projects. It also urges the establishment of a strategic reserve for raw materials, including copper, aluminum, and processed rare earth minerals, which are vital for building AI infrastructure. Although OpenAI initially shared this letter on October 27, it gained more attention this week following comments made by the company’s executives. During a Wall Street Journal event, CFO Sarah Friar suggested that the government should provide a safety net for OpenAI’s infrastructure loans. However, she later clarified on LinkedIn, stating that OpenAI does not seek any government guarantees for its infrastructure commitments, as her choice of words may have caused confusion. CEO Sam Altman echoed this sentiment, asserting that OpenAI does not desire government intervention in its operations. He emphasized that taxpayers should not be responsible for covering losses incurred by companies making poor business decisions. Altman also mentioned that while the company has discussed loan guarantees to support semiconductor manufacturing in the U.S., OpenAI remains focused on its independent growth trajectory. Looking ahead, Altman projected that OpenAI expects to surpass $20 billion in annual revenue by the end of 2025 and aims for hundreds of billions by 2030, with $1.4 trillion in capital commitments planned over the next eight years.