OpenAI asks Trump team to extend CHIPS credit to data centres

OpenAI has formally asked the Trump administration to widen a key CHIPS Act incentive so that the 25% Advanced Manufacturing Investment Credit also covers AI servers, data centres and long‑lead grid equipment, according to a letter sent on 27 October to White House science chief Michael Kratsios.

What the company has proposed

In its submission, signed by OpenAI’s chief global affairs officer Chris Lehane and addressed to the Director of the Office of Science and Technology Policy, the company has argued that broadening eligibility would lower the cost of capital, de‑risk early investment and unlock private finance to accelerate US AI infrastructure build‑out. The request has specifically named AI server production, AI data centres and grid components such as transformers.

OpenAI chief executive and co‑founder Sam Altman has reiterated the ask in public comments, saying the tax credit is distinct from any discussion of federal loan guarantees, which he has said OpenAI has explored only in the context of US chip fabrication. He has also said OpenAI has made capital commitments of about $1.4 trillion over the next eight years to build compute infrastructure.

How the CHIPS credit works today

The Advanced Manufacturing Investment Credit (Internal Revenue Code §48D) has provided a 25% credit for qualified investments in facilities whose primary purpose is manufacturing semiconductors or semiconductor‑making equipment; Treasury and the IRS have final regulations in place guiding eligibility and elective payment. Any move to apply this credit to data centres and related power gear would require policy action beyond the credit’s current scope.

While Treasury has previously clarified that certain solar ingot and wafer factories qualify under §48D, data centres themselves are not covered under existing rules; several analysts have noted that expanding eligibility to data centre infrastructure would likely need Congressional action.

White House context

Michael Kratsios has served as the administration’s OSTP Director since March 2025, a role in which he has outlined priorities around accelerating US technology leadership. OpenAI’s letter has been addressed directly to him in that capacity.

Amid industry requests for support, the administration’s AI policy lead David Sacks has said there would be no federal bailout for AI, framing the government’s stance as market‑driven.

OpenAI’s position on guarantees and “backstops”

Altman has said that OpenAI has not sought, and does not want, government guarantees for its data‑centre projects, after brief confusion prompted by a “backstop” remark from the firm’s CFO that she has subsequently walked back.

What has OpenAI asked for under the CHIPS Act?

OpenAI has asked the administration to consider an expanded interpretation or extension of the CHIPS‑era Advanced Manufacturing Investment Credit so that, in addition to chip fabs and tooling, it would also cover AI servers, AI data centres and critical grid hardware needed to power them.

Data centre infrastructure in focus

Major AI providers have faced tight supplies of power and hardware, pushing companies to secure long‑term energy and equipment pipelines. Tech firms have increasingly turned to nuclear and other firm, low‑carbon sources to support data‑centre growth, underscoring how power infrastructure has become a strategic constraint.

What happens next

The Treasury‑administered §48D credit has, to date, targeted semiconductor manufacturing; broadening it to cover data‑centre assets would require executive or legislative steps not yet taken. Policy watchers have said a formal expansion to data‑centre infrastructure would likely need Congressional approval, even as industry continues to lobby for faster siting, permitting and grid upgrades.