OpenAI Urges Trump Administration to Extend Chips Act Tax Credit to Data Centers
OpenAI is advocating for an expansion of the Advanced Manufacturing Investment Credit (AMIC) to encompass AI infrastructure. This proposal was conveyed in a letter addressed to the White House by Chris Lehane, OpenAI’s chief global affairs officer. The AMIC, a 35% tax credit included in the Biden administration’s Chips Act, currently focuses on semiconductor fabrication.
Proposal for AMIC Expansion
In the letter, OpenAI emphasizes that broadening the AMIC will help lower capital costs, reduce investment risks, and attract private funding. This support is essential for alleviating bottlenecks in AI development across the United States.
Support for AI Infrastructure
- OpenAI requests that the government speed up the permitting and environmental review processes for data center projects.
- The letter suggests the creation of a strategic reserve for essential raw materials, including copper, aluminum, and processed rare earth minerals.
This correspondence was initially published on October 27 but gained more attention recently due to comments from OpenAI executives regarding their needs from the Trump administration. At a Wall Street Journal event, OpenAI CFO Sarah Friar mentioned the necessity for the government to support infrastructure loans. However, she later clarified on LinkedIn that OpenAI is not seeking a government backstop for its infrastructure initiatives.
Statements from OpenAI Leadership
CEO Sam Altman also addressed this topic, asserting that OpenAI does not desire any government guarantees for its data centers. He highlighted the importance of preventing the government from favoring certain companies or bailing out those that fail in the market.
Furthermore, Altman shared that OpenAI anticipates reaching an annualized revenue of over $20 billion by 2025, projecting significant growth to hundreds of billions by 2030. He mentioned that the company has committed $1.4 trillion for future investments over the next eight years.
