OpenAI Seeks Government Boost for Ambitious Data Center Expansion

OpenAI Seeks Government Support for Ambitious Data Center Plans In a recent letter to the White House, OpenAI's chief global affairs officer Chris Lehane urged the government to expand the Advanced Manufacturing Investment Credit (AMIC) to cover data centers and other critical infrastructure for artificial intelligence (AI) development. The letter, addressed to Michael Kratsios, director of science and technology policy, highlighted the need for government support to alleviate bottlenecks and accelerate the AI build in the US. According to the letter, OpenAI is seeking to expand the AMIC, a 35% tax credit included in the Biden administration's Chips Act, to cover electrical grid components, AI servers, and AI data centers. This expansion would lower the effective cost of capital, de-risk early investment, and unlock private capital to support the construction of AI infrastructure. The company estimates that this support would be crucial in addressing the growing demand for AI infrastructure, which is expected to reach $1.4 trillion by 2025. The Chips Act, signed into law in August 2022, was designed to boost the US semiconductor industry and promote domestic manufacturing. However, OpenAI's letter suggests that the government's support should extend beyond semiconductor fabrication to address the broader needs of the AI ecosystem. By expanding the AMIC, the government could provide a significant boost to the development of AI infrastructure, which is critical for the growth of industries such as healthcare, finance, and education. OpenAI's letter also called for the government to accelerate the permitting and environmental review process for data center projects, which can take years to complete. The company estimates that a streamlined permitting process could save up to 30% of the total project cost. Additionally, OpenAI is seeking the creation of a strategic reserve of raw materials such as copper, aluminum, and processed rare earth minerals needed to build AI infrastructure. The company's push for government support comes as the demand for AI infrastructure continues to grow. According to a report by MarketsandMarkets, the global AI infrastructure market is expected to reach $1.4 trillion by 2025, growing at a compound annual growth rate (CAGR) of 34.6%. This growth is driven by the increasing adoption of AI technologies in various industries, including healthcare, finance, and education. OpenAI's ambitious plans for data center construction are part of the company's broader strategy to develop and deploy AI technologies that can benefit society. The company has already made significant investments in AI research and development, and its data center plans are expected to play a critical role in supporting the growth of the AI ecosystem. As the demand for AI infrastructure continues to grow, the government's support for OpenAI's plans could have significant implications for the development of the AI industry. By expanding the AMIC and streamlining the permitting process, the government could provide a significant boost to the growth of AI infrastructure, which is critical for the growth of industries such as healthcare, finance, and education. However, the success of OpenAI's plans will depend on the government's willingness to provide the necessary support and resources. In conclusion, OpenAI's letter to the White House highlights the need for government support to alleviate bottlenecks and accelerate the AI build in the US. By expanding the AMIC and streamlining the permitting process, the government could provide a significant boost to the growth of AI infrastructure, which is critical for the growth of industries such as healthcare, finance, and education. As the demand for AI infrastructure continues to grow, the government's support for OpenAI's plans could have significant implications for the development of the AI industry.