OpenAI Lobbies Trump Administration to Supercharge Chips Act Tax Credits
Silicon Valley's AI giant makes power play for semiconductor subsidies.
OpenAI—riding high on its $80B+ valuation—just turned lobbyist. The AI juggernaut is pressuring the Trump administration to expand tax credits under the CHIPS Act, according to sources familiar with the matter.
Why it matters: More credits = more chips = more AI dominance. OpenAI's move comes as global semiconductor shortages continue throttling AI development. The company wants Uncle Sam to foot more of the bill for next-gen chip production.
The cynical take: Another day, another tech giant gaming the tax code. While OpenAI talks up 'national competitiveness,' this is really about padding margins—with taxpayers subsidizing their hardware costs. Typical Silicon Valley: privatize the gains, socialize the R&D.
What's next: Watch for backlash from fiscal conservatives. The CHIPS Act already doled out $52B—now OpenAI wants seconds? This could spark a political brawl over corporate welfare in an election year.
Administration says no to federal AI backstop
OpenAI’s request comes as attention to the costs and funding of AI infrastructure has been increasing. The company has already committed to investing $1.4 trillion in data centres and chips to develop even more advanced AI systems. Its investment plans have baffled some in the industry, as OpenAI has employed inventive financing mechanisms to support this expansion.
This week, Chief Financial Officer Sarah Friar sparked controversy by suggesting that perhaps the U.S. government has a role to play in supporting financing for AI infrastructure. OpenAI promptly stated that it is not seeking a federal bailout, saying Friar was mistaken.
The administration has been unequivocal in not supporting a direct financial backstop for AI companies. White House AI and crypto czar David Sacks has publicly stated that there is no Federal bailout for AI.
OpenAI CEO Sam Altman assured that the company is seeking measures to bolster the U.S. AI and semiconductor sector, not loans or guarantees for its own operations. A robust U.S. supply chain from the manufacturer of semiconductors and transformers to raw steel would benefit all industry customers and other industries that depend on those elements, and it should be a national security interest,” Altman said.
OpenAI urges Washington to back AI infrastructure
The letter also suggested that manufacturers in the AI sector may soon receive broader government support through grants, loans, or cost-sharing arrangements.
Such a boost would be designed to guard against market distortion from international competition, including that of China, and reduce lead times in areas such as infrastructure. In a separate WHITE paper published in September, the company also noted that loan guarantees would enable AI firms to purchase U.S.-made chips in volume without worry, adding more depth to domestic chip demand while driving down costs for AI developers.
The Chips Act, which originally aimed at chip fabrication, has delivered only a small portion of its funds so far. OpenAI’s plan aligns with a TRUMP administration goal of enhancing U.S. competitiveness in AI by promoting domestic investment in infrastructure deemed essential.
It could also help accelerate the deployment of AI data centers and other infrastructure, making it more likely that the U.S. can remain a winner in AI technology by building out AI ecosystems for manufacturing in America.”
Although the administration has not publicly responded to OpenAI’s letter, the submission serves as an example of how AI companies are entering a new phase of influencing U.S. industry and technology policy. OpenAI’s proposal for a wider tax credit reflects its view that public policy could help facilitate the rapid deployment of AI while preserving the nation’s manufacturing capabilities.
Get up to $30,050 in trading rewards when you join Bybit today
