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

OpenAI Seeks Government Support for Ambitious Data Center Plans

A recent letter from OpenAI has shed light on the company’s plans to expand its data center infrastructure, with a request to the federal government to provide support for its ambitious project. The letter, addressed to the White House’s director of science and technology policy, Michael Kratsios, outlines OpenAI’s proposal to expand the Advanced Manufacturing Investment Credit (AMIC) to cover electrical grid components, AI servers, and AI data centers.

The AMIC, a 35% tax credit included in the Biden administration’s Chips Act, is currently limited to semiconductor fabrication. OpenAI’s chief global affairs officer, Chris Lehane, argued that broadening the coverage of the AMIC would “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.”

Accelerating Data Center Development

OpenAI’s letter also called for the government to accelerate the permitting and environmental review process for data center projects, as well as create a strategic reserve of raw materials, such as copper, aluminum, and processed rare earth minerals, needed to build AI infrastructure. This move is seen as a crucial step in supporting the development of AI data centers, which are essential for the growth of the AI industry.

At a recent Wall Street Journal event, OpenAI’s CFO, Sarah Friar, sparked discussion about the company’s plans when she suggested that the government should “backstop” OpenAI’s infrastructure loans. However, she later clarified on LinkedIn that OpenAI is not seeking a government backstop for its infrastructure commitments, stating that she “used the word ‘backstop’ and it muddied the point.”

CEO Sam Altman Weighs In

CEO Sam Altman also addressed the issue, stating that OpenAI does not “have or want government guarantees for OpenAI data centers.” He emphasized that the company believes governments should not pick winners or losers and that taxpayers should not bail out companies that make bad business decisions. Altman also shared the company’s expectations for significant revenue growth, predicting that OpenAI will end 2025 with an annualized revenue run rate of over $20 billion and grow to hundreds of billions by 2030.

For more information on OpenAI’s request to the Trump administration, read the full article Here

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