HomeTechnologyOpenAI urged Trump administration to widen Chips Act tax credit for AI data centres

OpenAI urged Trump administration to widen Chips Act tax credit for AI data centres

OpenAI’s letter to the Trump administration sought to expand Chips Act tax credits to include AI data centres and grid components. The company also asked for streamlined permits and material reserves to speed up infrastructure growth.

November 10, 2025 / 16:26 IST
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OpenAI
OpenAI

OpenAI has quietly lobbied the US government to extend the Chips Act tax benefits beyond chipmaking to cover the massive data centre infrastructure needed to power artificial intelligence systems.

In a letter sent by OpenAI’s chief global affairs officer Chris Lehane to Michael Kratsios, the White House’s director of science and technology policy, the company asked for the Advanced Manufacturing Investment Credit (AMIC) to include electrical grid components, AI servers, and data centres. The AMIC currently offers a 35% tax credit for semiconductor fabrication under the Biden-era Chips Act.

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Lehane argued that expanding the 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.” The letter also urged the government to streamline the permitting and environmental review process and to create a reserve of raw materials such as copper, aluminium, and rare earth minerals essential for AI infrastructure.

Although the letter was first published on October 27, it gained renewed attention this week following public comments by OpenAI executives. At a Wall Street Journal event, CFO Sarah Friar suggested the government should “backstop” OpenAI’s infrastructure loans — a remark she later retracted, clarifying on LinkedIn that she “misspoke” and that OpenAI was not seeking any financial guarantee.