Not only hoping for government guarantees, at the end of October OpenAI sent a letter to the Trump administration, requesting an "expansion of tax deductions" to reduce data center costs.

Not only hoping for government guarantees, at the end of October OpenAI sent a letter to the Trump administration, requesting an "expansion of tax deductions" to reduce data center costs.

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After controversy arose around the need for government “guarantees” to support massive infrastructure spending, a public letter reveals that OpenAI is seeking the US government to “lower AI infrastructure costs by expanding the CHIPS Act tax credit.”

This letter, dated October 27, was sent by OpenAI Head of Global Affairs Chris Lehane to White House Office of Science and Technology Policy Director Michael Kratsios. The letter proposes expanding a 35% manufacturing investment tax credit from chip manufacturing to AI data centers, AI server manufacturers, and key electrical grid components such as transformers.

According to a previous WallstreetCN article, earlier this week OpenAI CFO Sarah Friar suggested the US government may need to provide “guaranteed support” for AI infrastructure financing, sparking market speculation about a possible government bailout. Subsequently, Friar and CEO Sam Altman quickly clarified the remarks as a “misstatement,” emphasizing the company was not seeking government rescue for its own infrastructure commitments. The Trump administration also explicitly ruled out financial aid for AI firms, with White House AI & crypto chief David Sacks publicly stating “there will be no federal bailout for AI.”

This previously unreported letter reveals the role OpenAI hopes the government will play in helping hedge risks from its high-cost investments in AI. The nonprofit startup has committed $1.4 trillion to data centers and chips to build more advanced AI systems and support widespread technology adoption. As the huge spending plan comes under scrutiny, the letter shows OpenAI is seeking concrete fiscal tools to leverage private capital and accelerate US AI infrastructure construction.

Core Demand: Expand 35% Tax Credit

OpenAI clearly states in the letter that its key policy recommendation is to expand the “Advanced Manufacturing Investment Credit” in the CHIPS Act. This tax credit was raised from 25% to 35% in a comprehensive tax bill approved by Congress in July this year.

Chris Lehane points out that expanding the tax credit to cover AI data centers, server manufacturers, and fields such as transformers and specialized steel needed for their production will “reduce effective capital costs, de-risk early investment, and unlock private capital to help ease bottlenecks and accelerate US AI infrastructure buildout.”

A More Comprehensive Government Support Toolbox

Beyond tax credits, OpenAI’s letter advocates for the government to provide various forms of financial support to AI industry “manufacturers,” including grants, cost-sharing agreements, loans or loan guarantees, but does not specify which types of companies should be supported.

The letter says such fiscal support would help drive progress in specific areas, such as markets for raw materials like copper, aluminum and electrical steel. In addition, direct financial aid could help shorten delivery times for key grid components like transformers.

This is not the first time OpenAI has made such suggestions. According to a white paper on infrastructure policy released in September, OpenAI supports the use of loan guarantees to enable AI companies to “confidently make large-scale purchases of US-made chips.”

OpenAI’s latest policy lobbying comes after its executives’ remarks about government support caused a stir. Earlier this week, CFO Sarah Friar’s comments on government “guaranteed support” shocked some industry observers and raised questions about possible government bailouts.

“AI Czar”: If AI Firms Fail, So Be It—US Government Won’t Bail Them Out

According to US officials, after Friar’s remarks attracted attention, the Trump administration has ruled out financial support for AI companies. White House “AI Czar” David Sacks posted bluntly on social media Thursday:

“There are at least 5 major frontier AI model companies in the US. If one goes under, others will take its place.”

He added that the US government does want to simplify approval processes and increase electricity supply, aiming to speed up infrastructure construction without raising consumer utility rates. Sacks later clarified in a comment:

“To avoid misunderstanding, I actually don’t think anyone is asking for a US government bailout. (That would be ridiculous.) But company executives can clarify their own remarks.”

To quell the controversy, both Sam Altman and Sarah Friar stepped forward to clarify, emphasizing Friar’s remarks were a “misstatement.” Altman posted on social media Friday, attempting to draw a firm line. He said that efforts for the “entire stack”—from foundries, turbines, transformers to steel—“will help everyone in our industry, as well as others (including us).” He wrote:

“If the government wants to do anything to help ensure domestic supply chains, that’s great. But that’s totally different from providing OpenAI a loan guarantee—we want to be very clear about that.”

Afterwards, tech investor Gavin Baker even joked:

“We need to pause OpenAI’s public appearances and press releases to stabilize the market.”

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