OpenAI’s Altman Pushes for CHIPS Act Expansion to Fuel AI Infrastructure Boom

Sam Altman makes a strategic play for semiconductor subsidies—because nothing says 'innovation' like begging Washington for handouts.

The AI arms race just got a hardware upgrade. OpenAI's CEO is lobbying hard to extend the CHIPS Act, aiming to secure critical funding for next-gen AI server infrastructure. Because apparently, even trillion-dollar tech giants need taxpayer money to stay competitive.

Meanwhile in crypto-land: decentralized networks keep innovating without federal subsidies. Funny how that works.

TLDRs;

• OpenAI CEO urges US to expand CHIPS Act tax credit for AI servers.
• $1.4 trillion projected investment over eight years to build AI computational resources.
• White House clarifies no federal bailout will support AI companies.
• States with data center incentives could benefit AI hardware suppliers immediately.

OpenAI CEO Sam Altman is advocating for a significant expansion of the United States’ CHIPS Act, seeking to extend federal tax incentives to cover AI infrastructure, including server production, data centers, and grid components.

This MOVE marks a bold push to align federal policy with the rapidly growing demand for AI computational capacity.

Altman’s comments followed a formal letter sent to the WHITE House by OpenAI’s global affairs chief, Chris Lehane. The letter requested that the Advanced Manufacturing Investment Credit (AMIC), currently focused on semiconductor fabrication and related tools, be broadened to support AI hardware development.

The AMIC is designed to strengthen domestic semiconductor manufacturing, but OpenAI’s push highlights the growing need for specialized AI infrastructure beyond chips alone.

OpenAI Pushes for AI Infrastructure Credit

Altman clarified that the proposed expansion is separate from federal loan guarantees, which the company has only discussed in the context of chip factory construction.

“We see this as a way to ensure the United States remains competitive in AI by building the necessary computational resources,” Altman said.

OpenAI plans to invest approximately $1.4 trillion over the next eight years to support AI models like ChatGPT, underlining the scale of the company’s ambitions.

However, government officials remain cautious. White House AI coordinator David Sacks emphasized that there will be no federal bailout for AI companies, signaling that any support WOULD need to take the form of tax incentives or statutory amendments rather than direct financial rescue.

$1.4 Trillion AI Investment Planned

Expanding the AMIC to AI infrastructure would likely require Congressional action. The existing statute defines the credit’s scope narrowly, and Treasury and IRS guidance cannot extend it to servers or data centers.

This means that, while the proposal has strong industry backing, it faces a complex legislative path before becoming law.

In the meantime, AI hardware vendors are exploring opportunities at the state level. Several states offer robust incentives for data center development, providing a potential near-term advantage.

Michigan, for instance, extends sales tax exemptions on eligible projects through 2050–2065, while Kansas offers 20-year sales tax breaks for investments exceeding $250 million. Pennsylvania has proposed streamlined permitting and specialized electricity rates for high-load centers, and West Virginia has introduced microgrid districts to simplify power distribution.

Federal Bailout Ruled Out

Other states, however, are revisiting their incentives. Georgia and South Carolina are adjusting programs due to grid strain, while Minnesota has removed electricity relief but added sustainability requirements.

AI server and cooling equipment suppliers must carefully assess each state’s incentives, including exemption lengths and job thresholds, to optimize project placement while federal aid remains uncertain.

Altman’s push underscores the tension between the fast-moving AI industry and government policy. While OpenAI seeks to secure federal support for critical infrastructure, state-level programs are already shaping the economics of AI deployment across the country.

The coming months may prove decisive in determining whether federal legislation can keep pace with technological innovation, or whether states will continue to lead the way in incentivizing AI growth.