OpenAI requests US expand CHIPS tax credit to cover data centers and accelerate permitting

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OpenAI (OPENAI [https://seekingalpha.com/symbol/OPENAI]) has requested that the U.S. government expand a tax credit related to the CHIPS Act to cover data center infrastructure parts and accelerate related regulatory processes.

The request came in the form of a letter [https://cdn.openai.com/pdf/21b88bb5-10a3-4566-919d-f9a6b9c3e632/openai-ostp-rfi-oct-27-2025.pdf] sent by Chris Lehane, OpenAI's chief global affairs officer, to Michael Kratsios, the executive director of the White House's Office of Science and Technology Policy.

In particular, OpenAI requested to extend the Advanced Manufacturing Investment Tax Credit, which was established as part of the CHIPS Act, to go beyond semiconductors and semiconductor manufacturing equipment makers.

"OSTP should now double down on this approach and work with Congress to further extend eligibility to the semiconductor manufacturing supply chain; grid components like transformers and specialized steel for their production; AI server production; and AI data centers," Lehane wrote. "Broadening coverage of the AMIC will lower the effective cost of capital, de-risk early investment, and unlock private capital to help alleviate bottlenecks and accelerate the AI build in the US."

He said this is crucial to countering China's momentum in the global AI race.

Lehane asked for a speedier permitting process for projects related to AI infrastructure, such as transmission line construction. It should accelerate permitting processes under the Clean Water Act, the Clean Air Act and other types of environmental reviews. What's more, the letter calls for the creation of a strategic reserve for the materials needed to build out AI infrastructure, similar to the Strategic Petroleum Reserve.

It called for an extensive buildout of power capacity as well.

"Electrons are the new oil, and we believe the Trump Administration should work with the private sector on an ambitious national project to build 100 gigawatts a year of new energy capacity," OpenAI said.

An internal analysis by Microsoft-backed (MSFT [https://seekingalpha.com/symbol/MSFT]) OpenAI found that the first $1T invested in AI infrastructure could lead to GDP of 5% or more over the first three years.

"Based on the trends we are seeing of how people are using AI and how much of it they would like to use, we believe the risk to OpenAI of not having enough computing power is more significant and more likely than the risk of having too much," said OpenAI CEO Sam Altman in a post [https://x.com/sama/status/1986514377470845007] on X on Thursday. "Even today, we and others have to rate limit our products and not offer new features and models because we face such a severe compute constraint."

He also said OpenAI is not looking for a government bailout on its infrastructure goals.

"We believe that governments should not pick winners or losers, and that taxpayers should not bail out companies that make bad business decisions or otherwise lose in the market. If one company fails, other companies will do good work."

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