OpenAI urges expansion of CHIPS Act tax credit to AI data centers

What happened

OpenAI sent a letter to the Trump administration requesting an expansion of the Advanced Manufacturing Investment Credit (AMIC) under the CHIPS Act. The company wants the tax credit to cover AI data centers, servers, and electrical grid components, not just semiconductor manufacturing. The letter also urged faster permitting and a strategic reserve of raw materials for AI infrastructure.

Why it matters

• Expanding the tax credit could lower capital costs and reduce investment risks for AI infrastructure in the U.S.
• It may accelerate the construction of AI data centers and strengthen supply chains for critical components.
• The request reflects growing industry demand for power and hardware to support large-scale AI systems.

Key facts

1. 1. The AMIC currently offers a 35% tax credit under the Biden administration’s CHIPS Act.
2. 2. OpenAI published its letter on October 27, 2025.
3. 3. OpenAI’s next-generation data center project could draw as much as 5 gigawatts of power.