OpenAI asks U.S. to expand CHIPS Act tax credit to cover AI infrastructure despite firm's denial wanting a government 'backstop' for its massive loans

OpenAI has asked the Trump administration to expand a major CHIPS Act tax credit to support the build-out of AI infrastructure, including servers, data centers, and power systems. The company submitted the proposal in October as part of the Office of Science and Technology Policy’s public consultation on long-term AI policy, according to a policy document posted online by OpenAI.

At issue is the Advanced Manufacturing Investment Credit (AMIC), a 25% investment tax credit created under Section 48D of the Internal Revenue Code. Finalized by the Treasury Department in 2024, the credit currently applies to capital expenditures related to semiconductor manufacturing and tooling. OpenAI is urging the administration to broaden that scope, arguing that the same incentive should apply to domestic production of AI servers, as well as to the construction of AI data centers and supporting grid infrastructure.

The company frames the expansion as a way to lower the cost of capital for U.S.-based AI infrastructure, accelerate deployment timelines, and strengthen supply chains that are already under pressure. The filing specifically calls out high-voltage transformers, HVDC converters, and transmission lines as long-lead bottlenecks that merit federal support. It also recommends additional grants, loans, and loan guarantees to ensure critical components are manufactured at a sufficient scale.

OpenAI’s request comes amid a broader industry scramble to secure power, hardware, and real estate for large-scale inference clusters. CEO Sam Altman has previously said the U.S. will need to add up to 100 gigawatts of new generation capacity to support AI growth, nearly doubling current grid expansion plans. The company’s next-generation data center project, reportedly dubbed “Stargate,” could draw as much as 5 gigawatts on its own.

Although the Treasury Department has discretion in interpreting the law, AMIC’s current scope is defined by Congress. Expanding the tax credit to cover data centers and AI systems would likely require legislative action. That hasn’t stopped industry leaders from lobbying for broader eligibility, particularly as the U.S. tries to keep pace with infrastructure expansion in China and the Gulf states.

The push for tax credits is separate from the discussion around federal loan guarantees. After public backlash over reports that OpenAI had explored government support for its own operations, Altman clarified that the company had sought only guarantees from semiconductor manufacturing partners. The policy filing does not request direct subsidies to OpenAI and instead outlines measures that could benefit U.S. AI infrastructure more broadly.

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