OpenAI urges US to expand Chips Act tax credit for AI centers

What happened

OpenAI has requested that the U.S. government expand the existing Chips Act tax credit to include artificial intelligence data centers and server makers. The company submitted a letter on October 27, 2025, asking for the 35% tax rebate to be extended beyond chip fabs to AI infrastructure. OpenAI also proposed including electrical grid components like transformers in the tax credit eligibility.

Why it matters

• Expanding the tax credit could lower costs for building AI data centers and accelerate AI infrastructure development in the U.S.
• The move aims to support domestic AI growth and manufacturing, potentially boosting the semiconductor and energy sectors.
• OpenAI plans to invest $500 billion in AI data centers, making it a major beneficiary if the tax credit is expanded.

Key facts

1. 1. The 2022 CHIPS and Science Act provides $280 billion in financing for the U.S. semiconductor industry.
2. 2. The existing AMIC tax credit offers a 35% rebate for investments in chip fabs and semiconductor manufacturing equipment.
3. 3. OpenAI’s letter requesting expansion of the tax credit was sent on October 27, 2025.