OpenAI, the San Francisco-based artificial intelligence company, has garnered attention this week following the publication of a letter on October 27. In their original letter, OpenAI executives stated their “almost desperate” hope that the Trump administration would expand the existing Chips Act tax credit. They want it to extend to AI data centers. Simply put, this new proposal intends to help the AI industry flourish here in America.
The Chips Act established the Advanced Manufacturing Investment Credit (AMIC). It provides a generous 35% tax credit for investments in semiconductor manufacturing. OpenAI further contends that expanding the scope of AMIC will have a dramatic effect on the effective cost of capital. Their hope is that it will de-risk early investments and unlock private capital, relieving bottlenecks in the AI development landscape.
Sam Altman, CEO of OpenAI, clarified that the company does not seek or require government guarantees for its data centers. He stated, “OpenAI does not have or want government guarantees for OpenAI datacenters.” This claim was further reiterated by Sarah Friar, who stated that the words we use in these conversations can sometimes cloud what we’re really trying to do. She remarked, “OpenAI is not seeking a government backstop for our infrastructure commitments. I used the word ‘backstop’ and it muddied the point.”
The letter from OpenAI is welcome and encouraging at this important time, as the company expects booming revenue growth. And they hope to end 2025 with an annualized revenue run rate greater than $20 billion. By 2030, they expect that growth will be in the hundreds of billions. To further facilitate this major expansion, OpenAI has pledged $1.4 trillion in new operating and growth capital over the next eight years.
Chris Lehane, a spokesperson for OpenAI, articulated the potential benefits of expanding the AMIC: “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.”
Despite having flown under the radar until this week, OpenAI’s proposal has gotten the entire industry and potential investors deeply interested. The tech community is especially tuned into these moves because they have the potential to set the tone for future investments and infrastructure in AI.
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