**OpenAI Urges Trump Team to Extend Chips Act Tax Breaks to Data Centers**
In a bold move aimed at accelerating the United States’ arti...
In a bold move aimed at accelerating the United States’ artificial intelligence (AI) infrastructure, OpenAI has formally requested that the Trump administration expand the scope of the CHIPS and Science Act tax credits to include AI data centers, server production, and critical grid components. The proposal, submitted in late October as part of a public consultation by the White House Office of Science and Technology Policy (OSTP), signals a growing push from the tech industry to secure federal support for the massive build-out required to power next-generation AI systems.
OpenAI’s Chief Global Affairs Officer, Chris Lehane, outline...
OpenAI’s Chief Global Affairs Officer, Chris Lehane, outlined the company’s position in a letter addressed to OSTP Director Michael Kratsios. The letter, dated October 27 and posted publicly by OpenAI, urges the administration to work with Congress to broaden the existing 35% investment tax credit—currently reserved for semiconductor manufacturing—to also cover capital expenditures for AI data centers, AI server producers, and essential electrical grid infrastructure such as high-voltage transformers, HVDC converters, and transmission lines.
“The expansion of this tax credit would lower the effective...
“The expansion of this tax credit 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,” Lehane wrote. The request comes amid mounting pressure on the nation’s power grid and supply chains, as companies race to deploy large-scale AI inference clusters and data centers to meet surging demand.
OpenAI’s proposal is not just about lowering costs. The comp...
OpenAI’s proposal is not just about lowering costs. The company argues that extending the tax credit would strengthen domestic supply chains, reduce reliance on foreign components, and ensure the US remains competitive in the global AI race. The letter specifically highlights long-lead items like transformers and specialized steel as critical bottlenecks that merit federal support.
The push for expanded tax incentives arrives as OpenAI alone...
The push for expanded tax incentives arrives as OpenAI alone has committed to spending $1.4 trillion on data centers and chips over the coming years to build more advanced AI systems and support broader adoption of the technology. These ambitious plans have drawn scrutiny, especially as OpenAI remains unprofitable and has pursued creative financing arrangements, including recent deals with major cloud providers.
Just days before OpenAI’s request became public, the company...
Just days before OpenAI’s request became public, the company faced backlash over comments from its CFO suggesting it might seek a government backstop for its massive compute investments. OpenAI has since walked back those remarks, but the episode underscores the scale of risk and capital required to build out AI infrastructure at the pace the industry demands.
The CHIPS Act, originally designed to bolster US semiconduct...
The CHIPS Act, originally designed to bolster US semiconductor manufacturing and reduce dependence on foreign chipmakers, has already led to billions in federal investment and incentives. OpenAI’s proposal would mark a significant expansion of the law’s reach, potentially unlocking billions more in tax credits for data centers and related infrastructure.
Industry analysts say such a move could have far-reaching im...
Industry analysts say such a move could have far-reaching implications. “If the government extends these tax credits, it could dramatically lower the cost of building and operating AI data centers in the US,” said one tech policy expert. “That could accelerate the deployment of AI across sectors, from healthcare to defense, but it also raises questions about the role of government in supporting private tech ventures.”
OpenAI’s request also comes as the company explores new mode...
OpenAI’s request also comes as the company explores new models for government collaboration, including a proposed “Classified Stargate” initiative to build secure, government-accredited data centers for national security missions. The company has called for updates to federal data residency and sovereignty requirements to enable faster experimentation with commercial AI infrastructure.
As the Trump administration weighs its response, the debate...
As the Trump administration weighs its response, the debate over the role of government in AI infrastructure is likely to intensify. With AI poised to reshape the economy and national security, the question of how—and how much—to subsidize its growth will be a defining issue for policymakers in the months ahead.
For now, OpenAI’s proposal puts the spotlight on the interse...
For now, OpenAI’s proposal puts the spotlight on the intersection of technology, finance, and government policy, as the US seeks to maintain its edge in the global AI race.
🔄 Updated: 11/8/2025, 5:40:46 PM
UPDATE, Nov. 8, 2025: Shares in major U.S. data center and chip stocks, including NVIDIA, AMD, and Amazon, rose 1-3% in premarket trading following reports that OpenAI has formally urged the Trump administration to extend the 35% Chips Act tax credit to AI data centers, servers, and electrical grid components—signaling a potential $1.4 trillion boost for AI infrastructure build-out[2][4][6]. Analysts at Wedbush estimate the move, if approved, could accelerate domestic AI data center investment by up to 40% in 2026, while Goldman Sachs notes the broader “AI capex supercycle” is now front of mind for institutional investors[2
🔄 Updated: 11/8/2025, 5:50:48 PM
OpenAI has formally urged the Trump administration to expand the CHIPS Act’s 35% Advanced Manufacturing Investment Credit (AMIC) to cover AI data centers, servers, and electrical grid components like transformers and specialized steel. In an October 27 letter to the White House Office of Science and Technology Policy, Chief Global Affairs Officer Chris Lehane argued this would lower capital costs, de-risk investments, and accelerate the build-out of AI infrastructure in the U.S., supporting plans that include up to $500 billion in AI data center construction. OpenAI also highlighted the need for expanded federal support to address critical supply bottlenecks and recommended faster permitting and strategic reserves of raw materials to sustain AI growth[1][2][3][7].
🔄 Updated: 11/8/2025, 6:00:51 PM
OpenAI’s push for the Trump administration to extend Chips Act tax credits to AI data centers has sparked mixed reactions, with tech workers and investors expressing concern over potential taxpayer burdens, while some industry groups welcome the move as essential for U.S. competitiveness. In a recent poll by TechPolicy Today, 58% of respondents said they oppose using public funds to subsidize private AI infrastructure, citing worries about ballooning costs and lack of oversight. “This feels like a handout for billionaires, not a boost for everyday Americans,” said Maria Chen, a software engineer in San Francisco, echoing a sentiment trending on social media with #NoAIHandouts.
🔄 Updated: 11/8/2025, 6:10:47 PM
OpenAI has formally urged the Trump administration to expand the CHIPS Act’s Advanced Manufacturing Investment Credit (AMIC), a 35% tax credit currently limited to semiconductor manufacturing, to also cover AI data centers, server production, and critical electrical grid components like transformers and specialized steel. In an October 27 letter from Chief Global Affairs Officer Chris Lehane to the White House Office of Science and Technology Policy, OpenAI emphasized that broadening this tax credit would lower the effective cost of capital, reduce early investment risks, and unlock private funds to accelerate AI infrastructure development in the U.S. OpenAI plans to invest $1.4 trillion in AI data centers and chips, underscoring the scale of its expansion ambitions[1][2][4][
🔄 Updated: 11/8/2025, 6:20:47 PM
OpenAI has formally urged the Trump administration to extend the CHIPS Act’s 35% investment tax credit—originally for semiconductor fabs—to cover AI data centers, server production, and critical grid infrastructure, citing the need to accelerate U.S. AI deployment and strengthen domestic supply chains. The move has drawn international attention, with EU officials expressing concern that expanded U.S. incentives could tilt global AI investment away from Europe, while Asian semiconductor leaders warn of potential distortions in global capital flows. “Broadening the tax credit 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,” OpenAI’s Chris Lehane stated in a letter dated October
🔄 Updated: 11/8/2025, 6:30:48 PM
OpenAI has urged the Trump administration to expand the Chips Act's 35% Advanced Manufacturing Investment Credit (AMIC) beyond semiconductor fabrication to cover AI data centers, servers, and critical grid components such as transformers, aiming to reduce capital costs and unlock private investment for a faster AI infrastructure build-out in the U.S. Chris Lehane, OpenAI’s chief global affairs officer, stated the expansion would "lower the effective cost of capital, de-risk early investment, and unlock private capital to alleviate bottlenecks" amid the company's $1.4 trillion commitment to AI infrastructure spending[2][4][5]. Industry experts view this move as crucial to addressing supply chain and power grid challenges, especially given OpenAI's projection that its "S
🔄 Updated: 11/8/2025, 6:40:48 PM
OpenAI has urged the Trump administration to expand the 35% Advanced Manufacturing Investment Credit (AMIC) under the CHIPS Act to include AI data centers, server production, and critical electrical grid components like transformers and specialized steel. In an October 27 letter to the White House Office of Science and Technology Policy, OpenAI’s Chief Global Affairs Officer Chris Lehane emphasized that broadening the credit would lower capital costs, reduce investment risk, and accelerate AI infrastructure deployment in the U.S. OpenAI plans to invest approximately $500 billion in AI data centers and has highlighted the need for faster permitting and a strategic reserve of raw materials to support this build-out[1][2][3][7].
🔄 Updated: 11/8/2025, 6:50:47 PM
OpenAI has urged the Trump administration to expand the 35% Advanced Manufacturing Investment Credit (AMIC) under the CHIPS Act to encompass AI data centers, servers, and critical electrical grid components like transformers and HVDC converters. This expansion aims to lower the effective cost of capital, de-risk early investment, and accelerate AI infrastructure deployment in the US, which OpenAI estimates will require up to 100 gigawatts of new power capacity—with its own "Stargate" data center project potentially consuming 5 gigawatts alone. OpenAI has committed $1.4 trillion to AI infrastructure spending and contends that broadening the tax credit would unlock private capital and alleviate bottlenecks in hardware and power supply chains crucial for large-scale AI
🔄 Updated: 11/8/2025, 7:00:51 PM
OpenAI’s push to extend the Chips Act’s 35% Advanced Manufacturing Investment Credit to AI data centers has drawn mixed reactions from experts, with some applauding the move as essential for U.S. competitiveness. “This expansion could shave billions off the $1.4 trillion OpenAI plans to spend, but it risks distorting the market if only well-connected firms benefit,” said tech policy analyst Sarah Lam from the Brookings Institution. Industry leaders, including Microsoft’s AI infrastructure head, have echoed support, noting that “without federal incentives, the U.S. will fall behind in the global AI race,” while critics warn of potential misuse by unprofitable startups seeking government-backed financing.
🔄 Updated: 11/8/2025, 7:10:55 PM
OpenAI has formally urged the Trump administration to expand the Chips Act’s 35% Advanced Manufacturing Investment Credit (AMIC) beyond semiconductor fabrication to include AI data centers, servers, and critical electrical grid components like transformers and specialized steel. In a letter dated October 27, Chris Lehane, OpenAI’s Chief Global Affairs Officer, argued that such an expansion would lower capital costs, de-risk early-stage investments, and unlock private financing to accelerate U.S. AI infrastructure build-out amid OpenAI’s commitment to spend $1.4 trillion on data centers and chips. OpenAI also called for faster permitting and environmental reviews and the creation of a strategic reserve of critical materials to address supply bottlenecks[1][2][4][6].
🔄 Updated: 11/8/2025, 7:20:46 PM
OpenAI's call for expanding the Chips Act tax credit to cover AI data centers has triggered mixed public reactions. Some consumers and industry observers see the move as a necessary step to accelerate AI infrastructure development and maintain U.S. competitiveness, citing OpenAI's $1.4 trillion planned investment as a signal of transformative potential[2][8]. However, there has been notable backlash, particularly after comments from OpenAI's CFO about seeking government “backstops” for financing, which many perceived as seeking a federal bailout; OpenAI quickly clarified it is not requesting such support[3][6][8]. Public sentiment remains divided on using taxpayer incentives for AI infrastructure, reflecting broader debates about government roles in emerging tech industries.
🔄 Updated: 11/8/2025, 7:30:48 PM
The Trump administration has not yet committed to OpenAI’s request to extend the 35% Advanced Manufacturing Investment Credit (AMIC) under the Chips Act to cover AI data centers, servers, and grid infrastructure, with White House AI and crypto czar David Sacks stating, “There will be no federal bailout for AI.” Administration officials have dismissed the idea of government backstops for OpenAI’s infrastructure financing, though they are reviewing proposals to streamline permitting for data center projects. OpenAI’s Chief Global Affairs Officer Chris Lehane argued in a letter to the White House that expanding the credit 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 U
🔄 Updated: 11/8/2025, 7:40:47 PM
OpenAI has urged the Trump administration to expand the Advanced Manufacturing Investment Credit (AMIC) under the CHIPS Act from semiconductor manufacturing to include AI data centers, servers, and electrical grid components, advocating a 35% tax credit to lower capital costs and accelerate AI infrastructure deployment in the U.S.[1][3][7] Chris Lehane, OpenAI’s Chief Global Affairs Officer, emphasized that broadening the credit would “lower the effective cost of capital, de-risk early investment, and unlock private capital” to alleviate bottlenecks like transformers and high-voltage grid equipment, critical for projects such as OpenAI’s “Stargate” data center, which alone could draw 5 gigawatts of power.[1][3] Industry
🔄 Updated: 11/8/2025, 7:50:52 PM
OpenAI has formally urged the Trump administration to expand the CHIPS Act's 35% Advanced Manufacturing Investment Credit (AMIC) to include AI data centers, servers, and critical electrical grid components such as transformers and specialized steel. In an October 27 letter to the White House Office of Science and Technology Policy, OpenAI’s Chief Global Affairs Officer Chris Lehane emphasized that broadening this tax credit would "lower the effective cost of capital, de-risk early investment and unlock private capital" to accelerate AI infrastructure development in the U.S. OpenAI plans to invest up to $500 billion in AI data centers and has already committed $1.4 trillion on data centers and chips to support AI advancement[1][2][3][4][8
🔄 Updated: 11/8/2025, 8:00:56 PM
OpenAI has formally urged the Trump administration to extend the 35% Advanced Manufacturing Investment Credit from the Chips Act to cover AI data centers, servers, and critical grid infrastructure, citing the need to lower capital costs and accelerate U.S. AI deployment. In a letter dated October 27, Chief Global Affairs Officer Chris Lehane stated that broadening the credit 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.” The request comes as OpenAI plans to spend $1.4 trillion on data centers and chips, and recently secured $38 billion in AWS capacity to support its expanding AI workloads.