OpenAI’s Request to Expand CHIPS Act Tax Credit
Yes, OpenAI has formally requested that the Trump administration expand the Advanced Manufacturing Investment Credit (AMIC)—a key 35% tax credit from the 2022 CHIPS and Science Act—beyond its original focus on semiconductor fabrication facilities to include investments in AI data centers, AI server production, and critical electrical grid infrastructure like transformers and specialized steel.
Key Details from the Request
- Date and Recipient: The proposal was outlined in a letter dated October 27, 2025, from OpenAI’s Chief Global Affairs Officer Chris Lehane to Michael Kratsios, Director of the White House Office of Science and Technology Policy.
- Rationale: OpenAI argues this expansion would accelerate the U.S. build-out of AI infrastructure, reduce costs for massive investments (the company alone has pledged $1.4 trillion in data centers and chips), and bolster domestic competitiveness in AI against global rivals. It aligns with the Trump administration’s emphasis on revamping the CHIPS Act to prioritize AI leadership.
- Broader Suggestions: The letter also floats other incentives like grants, cost-sharing, loans, and loan guarantees for the AI sector, though OpenAI has since clarified it is not seeking direct federal backstops or bailouts for its own projects.
Context and Recent Developments
This request surfaced amid heightened scrutiny of AI infrastructure funding. On November 6, 2025, OpenAI CFO Sarah Friar suggested at a Wall Street Journal event that the government could “backstop” financing for AI data centers, sparking backlash over perceived bailout requests. She quickly retracted the comment on LinkedIn, and CEO Sam Altman reinforced on social media that OpenAI seeks broad industry support—not company-specific aid—stating: “To the degree the government wants to do something to help ensure a domestic supply chain, great. But that’s super different than loan guarantees to OpenAI.”
The CHIPS Act has so far disbursed only a fraction of its $75 billion in incentives ($5.5 billion as of January 2025), primarily for chip fabs. OpenAI’s push could reshape it into a broader AI enabler, potentially benefiting hyperscalers like Microsoft (OpenAI’s partner) and others racing to deploy energy-intensive data centers.
Potential Implications
- Pro: Could spur $100B+ in annual U.S. AI infrastructure spending, creating jobs and securing supply chains.
- Con: Critics worry it favors Big Tech subsidies, echoing debates over the original CHIPS Act’s slow rollout and equity issues.
This story broke widely on November 7-8, 2025, and reflects OpenAI’s proactive engagement with the new administration to fuel AI growth without direct handouts.