OpenAI Pushes Trump Admin for AI Data Center Tax Boost

OpenAI is pressing the Trump administration to expand existing tax incentives to support the rapidly growing AI sector. In a letter to the White House Office of Science and Technology Policy, the AI pioneer recommended broadening a 35% tax credit initially designed for semiconductor production to cover AI data centers, server manufacturers, and critical electrical grid components.

The startup argues that expanding the tax credit could lower investment risks, encourage private funding, and accelerate the build-out of AI infrastructure across the country. OpenAI has already committed $1.4 trillion toward developing advanced AI systems, including large-scale data centers and custom chips, sparking attention over how the firm finances these ambitious projects.

OpenAI’s proposal also emphasizes grants, cost-sharing arrangements, and loans for manufacturers in the AI industry, particularly for components where global competition, notably from China, may distort prices. Transformers, electrical steel, and other critical infrastructure elements were specifically highlighted as bottlenecks that government support could help resolve.

Earlier this year, CFO Sarah Friar suggested a potential government role in supporting OpenAI’s infrastructure financing. Though later clarified as a misstatement, the remarks fueled speculation about federal involvement. The Trump administration has dismissed any prospect of direct bailouts, while OpenAI leadership underscored that their proposal targets industry-wide support, not individual company rescue.

The letter coincides with ongoing efforts to revitalize US chip production under the 2022 Chips Act. Currently, only a fraction of available funding has been allocated, leaving room for additional measures to strengthen domestic AI supply chains. By widening tax incentives and other financial tools, OpenAI believes the US could maintain a competitive edge in the global AI race.