OpenAI pushes for broader tech tax incentives

In a bold move to accelerate AI infrastructure development, OpenAI has formally requested the U.S. government expand tax credits currently available under the CHIPS Act. The proposal, outlined in a letter from Chief of Global Affairs Chris Lehane, specifically targets data centers and AI server projects.

Image source note: The image is AI-generated, and the licensing service provider is Midjourney.

The company wants the Advanced Manufacturing Investment Credit (AMIC) - currently offering 35% tax breaks for semiconductor manufacturing - extended to cover:

• Electrical grid components powering data centers
• Specialized AI servers
• Data center construction costs

"This isn't about handouts," Lehane emphasized in his correspondence with White House science advisor Michael Kratsios. "It's about creating conditions where private capital can flow into critical national infrastructure."

Cutting through red tape

Beyond tax policy, OpenAI's wishlist includes:

• Faster environmental reviews for tech projects
• Strategic reserves of key materials like copper and aluminum
• Streamlined permitting processes

The timing coincides with explosive growth projections from OpenAI leadership. CEO Sam Altman recently revealed expectations of surpassing $20 billion in annual revenue by next year, with plans to invest a staggering $1.4 trillion over the coming decade.

"We're talking about building the foundation for America's technological future," Altman commented at a Wall Street Journal event. "But taxpayers shouldn't foot the bill for bad business decisions - smart policy can spark private investment without picking winners."

The proposal initially flew under the radar when quietly posted October 27th, gaining traction only after executives began discussing it publicly.

Clarifying misconceptions

Some initial reports suggested OpenAI sought direct government financing - a claim CFO Sarah Friar quickly corrected on LinkedIn: "Let me be crystal clear: we're not asking Washington to fund our data centers. We want policies that make these massive investments less risky for everyone involved."

The debate touches on fundamental questions about government's role in technological development during an era of intense global competition in artificial intelligence.

Key Points:

• 📈 OpenAI proposes extending CHIPS Act tax credits to AI infrastructure
• 🏗️ Seeks faster approvals and material reserves for tech projects
• 💰 Projects $20B+ revenue by 2025 with $1.4T investment plan
• 🇺🇸 Aims to boost U.S. competitiveness without direct subsidies