OpenAI Asks Trump Administration for Tax Breaks to Build AI Data Centers

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OpenAI Asks Trump Administration for Tax Breaks to Build AI Data Centers

OpenAI is making a bold ask of the Trump administration: expand the Chips Act’s lucrative tax incentives to cover AI data centers and infrastructure.

In a letter sent to White House science and technology policy director Michael Kratsios, OpenAI’s chief global affairs officer Chris Lehane argued that the Advanced Manufacturing Investment Credit (AMIC) should extend beyond semiconductor fabrication to include electrical grid components, AI servers, and data centers. Currently, the AMIC offers a 35% tax credit for eligible manufacturing investments.

“Broadening coverage of the AMIC 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,” Lehane wrote in the October 27 letter. The company’s wish list doesn’t stop there. OpenAI also called for streamlined permitting and environmental reviews for AI infrastructure projects, plus the creation of a strategic reserve of critical raw materials like copper, aluminum, and processed rare earth minerals.

The letter gained renewed attention this week following comments by OpenAI executives about government support. CFO Sarah Friar initially suggested at a Wall Street Journal event that the government should “backstop” OpenAI’s infrastructure loans, though she quickly clarified on LinkedIn that she misspoke and that OpenAI is not seeking such guarantees.

CEO Sam Altman also weighed in, stating clearly that OpenAI doesn’t “have or want government guarantees for OpenAI datacenters.” He emphasized that “governments should not pick winners or losers, and that taxpayers should not bail out companies that make bad business decisions.” However, he noted the company has discussed loan guarantees for supporting semiconductor fab construction in the US.

Despite the clarifications, OpenAI’s lobbying efforts reveal the scale of its ambitions. Altman disclosed that the company expects to exceed $20 billion in annualized revenue by the end of 2025, growing to hundreds of billions by 2030. To support that growth, OpenAI has secured approximately $1.4 trillion in capital commitments for data center infrastructure over the next eight years.