OpenAI's Altman urges US to expand CHIPS Act for AI infra

OpenAI CEO Sam Altman has urged the US government to expand the Chips Act tax credit to support AI infrastructure.

His comments came after OpenAI’s global affairs chief Chris Lehane sent a letter to the White House, asking to extend the Advanced Manufacturing Investment Credit (AMIC) to include AI server production, data centers, and grid components.

The AMIC is a federal tax incentive to boost domestic semiconductor manufacturing.

Altman clarified that the tax credit differs from federal loan guarantees, which OpenAI has only discussed for chip factory construction, not data centers.

He said OpenAI plans to spend US$1.4 trillion over the next eight years to build computational resources as demand for AI models like ChatGPT rises.

White House AI official David Sacks said there will not be a federal bailout for AI companies.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

AMIC expansion beyond semiconductors likely needs Congress

OpenAI wants to extend the CHIPS and Science Act (CHIPS Act) Advanced Manufacturing Investment Credit (AMIC) to AI servers, data centers, grid components 1. The credit now covers only chip fabrication and tool production 1. Final rules from October 2024 require a primary purpose of chip manufacturing, with over 50% of output from that activity 2.
Section 48D of the Internal Revenue Code (the statute that created AMIC) defines AMIC scope 3. Treasury and IRS lack room to add AI servers or data centers through guidance, so Congress would need to amend the statute 3.

AI hardware vendors should target states with active data center incentives

With federal AMIC expansion uncertain, AI infrastructure suppliers can chase near term gains by targeting states with active programs. Michigan offers sales tax exemptions through 2050 to 2065 for projects 4. Kansas grants 20 year sales tax exemptions for $250 million investments 4.
Pennsylvania proposes streamlined permitting with dedicated rate classes (special electricity pricing categories) for high load data centers 5. West Virginia created microgrid districts (areas that allow localized power generation and distribution) with relaxed zoning 4. Server and cooling vendors should track exemption length plus job thresholds to sharpen bids where federal aid is absent.
Georgia and South Carolina are reevaluating incentives due to grid strain 4. Minnesota removed electricity relief while adding sustainability rules 4. Mapping 2025 state incentives guides suppliers to the fastest markets with better economics.