OpenAI Advocates for Expanded Tax Credits to Support AI Data Center Development
In a recent communication, OpenAI has outlined its proposal for the federal government to enhance the support for data center construction through the expansion of the Advanced Manufacturing Investment Credit (AMIC). The letter, issued by Chris Lehane, OpenAI’s chief global affairs officer, was directed to Michael Kratsios, the White House director of science and technology policy. OpenAI urges the administration to broaden the scope of the AMIC to include critical components for the electrical grid, AI servers, and AI data centers, beyond its current focus on semiconductor manufacturing.
The AMIC offers a substantial 35% tax credit, a key provision of the Biden administration’s Chips Act. Lehane emphasized that extending this credit would lower capital costs, reduce investment risks, and attract private funding to alleviate existing supply chain constraints, thereby facilitating the acceleration of AI infrastructure within the United States.
Key points from the letter include:
- Expansion of AMIC: OpenAI requests that the tax credit encompass vital technologies for AI development.
- Streamlining Processes: The firm advocates for expedited permitting and environmental reviews to hasten project approvals.
- Raw Materials Reserve: OpenAI calls for a strategic reserve of essential materials like copper, aluminum, and rare earth minerals necessary for constructing AI facilities.
Although OpenAI released the letter on October 27, it gained significant attention this week following remarks from company executives that fueled discussions about government involvement in their infrastructure endeavors.
During a recent Wall Street Journal event, CFO Sarah Friar mentioned the potential for the government to "backstop" infrastructure loans, a statement she later clarified on LinkedIn, indicating that OpenAI does not seek government guarantees for its commitments. CEO Sam Altman echoed this sentiment, stating that OpenAI does not want government interventions that could favor certain companies over others. He did acknowledge that discussions around loan guarantees had occurred in the context of semiconductor manufacturing support.
Additionally, Altman projected that OpenAI anticipates surpassing $20 billion in annual revenue by the end of 2025, with aspirations to grow to hundreds of billions by 2030. The company has pledged $1.4 trillion in capital investments over the coming eight years to support its ambitious growth plans.
