From Chips to Servers: OpenAI Wants Tax Credits to Power the AI Backbone

Updated: November 09, 2025 00:47

Image Source: Reuters

OpenAI has urged the US government to expand the CHIPS Act tax credit to include AI data centres and server infrastructure. CEO Sam Altman and Chief Global Affairs Officer Chris Lehane argue that supporting the full AI stack—from semiconductors to grid components—is essential for America’s leadership in artificial intelligence.

Silicon Support Isn’t Enough: OpenAI Pushes for Tax Breaks on AI Infrastructure

In a bold policy push, OpenAI is calling on the US government to broaden the scope of the CHIPS and Science Act’s tax incentives, originally designed to boost domestic semiconductor manufacturing. The company wants the Advanced Manufacturing Investment Credit (AMIC) to also cover AI data centres, server production, and critical grid components, arguing that these are just as vital to the future of artificial intelligence as chip fabs.

Key Highlights from OpenAI’s Policy Appeal:

Beyond Chips: A Full-Stack Vision

CEO Sam Altman emphasized that US re-industrialization must span the entire AI stack—from fabs and servers to turbines and steel.

The goal is to ensure resilient infrastructure for AI development and deployment.

Formal Request to the White House

On October 27, OpenAI’s Chris Lehane submitted a letter to Michael Kratsios, Director of the White House Office of Science and Technology Policy.

The letter seeks an extension of AMIC eligibility to AI server production, data centres, and energy grid upgrades.

Why Data Centres Matter

AI models like GPT-4 and beyond require massive compute power, housed in specialized data centres.

These facilities are energy-intensive and capital-heavy, making tax incentives crucial for scaling.

National Competitiveness at Stake

Altman argues that without support for AI infrastructure, the US risks falling behind in the global AI race.

The proposal aligns with broader efforts to secure supply chains and boost domestic tech leadership.

Industry-Wide Implications

If accepted, the expanded credit could benefit cloud providers, hardware manufacturers, and energy companies involved in AI infrastructure.

It may also catalyze public-private partnerships for sustainable AI growth.

Political and Economic Context

The CHIPS Act currently offers a 35% tax rebate for investments in chip fabs.

OpenAI’s proposal reflects growing recognition that AI innovation depends on more than just semiconductors.

As AI becomes central to economic and strategic policy, OpenAI’s call to action underscores a critical shift: supporting the servers that make intelligence possible.

Sources: Economic Times CIO, BusinessWorld, EconoTimes, SiliconANGLE

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