OpenAI urges expansion of Chips Act tax credit for AI data centers
OpenAI has formally asked the US government to expand the Chips Act tax credit to cover AI data centers, servers and related power grid infrastructure. In a letter from Chief Global Affairs Officer Chris Lehane to White House science adviser Michael Kratsios, the company proposed extending the 35% Advanced Manufacturing Investment Credit (AMIC) under the Chips Act to include AI build-outs. OpenAI says this expansion of the Chips Act tax credit will lower early-stage investment costs and attract private capital for domestic AI infrastructure.
The proposal also calls for faster permitting and environmental reviews, a strategic reserve of key materials such as copper, aluminum and rare earths, and streamlined regulatory pathways for new data centers. CFO Sarah Friar confirmed OpenAI is not seeking direct subsidies or government guarantees, while CEO Sam Altman emphasized market-driven principles. The request coincides with OpenAI’s forecast of a $20 billion annualized revenue run rate by end-2025 and $1.4 trillion in capital commitments over eight years. The letter follows OpenAI’s recent acquisition of Software Applications, Inc., developer of the ‘Sky’ AI assistant for Mac. Traders should note that increased AI infrastructure spending could raise electricity demand, indirectly affecting energy markets and crypto mining operations.
Neutral
Since the proposal focuses on expanding the Chips Act tax credit for AI infrastructure and not directly on cryptocurrency assets, its immediate impact on specific crypto prices is unclear. While increased electricity demand from new data centers could boost mining profitability, any price movement for coins like Bitcoin is likely indirect and gradual. In the short term, traders may see minimal reaction. Over the long term, improved infrastructure and energy demand growth may support crypto mining sectors, but overall impact remains neutral given the proposal’s primary focus on AI hardware.