OpenAI Seeks Government Boost for AI-Powered Data Centers

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 requested that the federal government expand the Advanced Manufacturing Investment Credit (AMIC) to cover data centers, AI servers, and electrical grid components. This move is part of the company's efforts to accelerate the development of artificial intelligence (AI) infrastructure in the United States. The AMIC is a 35% tax credit included in the Biden administration's Chips Act, aimed at incentivizing investments in semiconductor fabrication. However, OpenAI's letter argued that broadening the coverage of the AMIC would have a significant impact on the company's plans to build data centers, which are critical components of AI infrastructure. By expanding the tax credit, OpenAI hopes to lower the effective cost of capital, de-risk early investment, and unlock private capital to alleviate bottlenecks and accelerate the AI build in the US. According to the letter, OpenAI is seeking to create a strategic reserve of raw materials such as copper, aluminum, and processed rare earth minerals needed to build AI infrastructure. The company is also requesting that the government accelerate the permitting and environmental review process for these projects. The Chips Act, which was signed into law in August 2022, allocated $52 billion to support the US semiconductor industry. The law aimed to reduce dependence on foreign chip manufacturers and promote domestic innovation. However, the law's focus on semiconductor fabrication has left other critical components of AI infrastructure, such as data centers, without sufficient support. OpenAI's request for government support is significant, given the company's ambitious plans for data center construction. In 2022, OpenAI announced plans to build a $10 billion data center in Texas, which would be one of the largest data centers in the world. The company has also been investing heavily in AI research and development, with a focus on developing more efficient and sustainable AI models. The implications of OpenAI's request are far-reaching, with potential impacts on the US economy, job market, and national security. A more robust AI infrastructure could lead to increased innovation, economic growth, and competitiveness, while also creating new job opportunities and driving technological advancements. However, the request also raises concerns about the environmental and social impacts of large-scale data center construction. Data centers are significant consumers of energy, and their construction can lead to increased greenhouse gas emissions and resource extraction. In conclusion, OpenAI's request for government support for its data center plans highlights the need for a more comprehensive approach to AI infrastructure development. By expanding the AMIC and accelerating permitting and environmental review processes, the government can help alleviate bottlenecks and accelerate the AI build in the US. However, the request also underscores the need for careful consideration of the environmental and social impacts of large-scale data center construction.