OpenAI Seeks Expanded Government Support for AI-Fueled 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 urged the government to expand the Advanced Manufacturing Investment Credit (AMIC) to cover electrical grid components, AI servers, and AI data centers. The company is seeking to alleviate bottlenecks and accelerate the AI build in the US by lowering the effective cost of capital and de-risking early investment. According to the letter, OpenAI is advocating for the government to broaden the coverage of the AMIC, which is a 35% tax credit included in the Biden administration's Chips Act. The company estimates that this expansion will unlock private capital and help alleviate bottlenecks in the AI infrastructure build. The Chips Act, signed into law in August 2022, aimed to boost the US semiconductor industry and promote domestic manufacturing. The proposed expansion of the AMIC would cover a range of components, including electrical grid components, AI servers, and AI data centers. OpenAI is also seeking to accelerate the permitting and environmental review process for these projects, as well as create a strategic reserve of raw materials such as copper, aluminum, and processed rare earth minerals needed to build AI infrastructure. In 2022, the US government allocated $52 billion for the Chips Act, with a significant portion dedicated to tax credits for semiconductor manufacturing. The expansion of the AMIC to cover AI infrastructure would require a significant investment, potentially in the tens of billions of dollars. However, the potential returns could be substantial, with OpenAI estimating that the expansion could unlock private capital and help alleviate bottlenecks in the AI infrastructure build. The market impact of OpenAI's proposal is significant, as it could potentially accelerate the growth of the US AI industry. According to a report by McKinsey, the global AI market is expected to reach $190 billion by 2030, with the US accounting for a significant share. The expansion of the AMIC could help the US maintain its competitive edge in the AI industry, while also creating jobs and driving economic growth. OpenAI is a leading AI research and development company, founded in 2015 by Elon Musk, Sam Altman, and others. The company has made significant contributions to the development of AI, including the creation of the GPT-3 language model. OpenAI's proposal to expand the AMIC is part of its broader strategy to promote the growth of the US AI industry and create a more sustainable and equitable AI ecosystem. Looking ahead, the future of the US AI industry will depend on the government's response to OpenAI's proposal. If the government decides to expand the AMIC, it could potentially accelerate the growth of the US AI industry and create new opportunities for companies like OpenAI. However, the proposal also raises questions about the potential risks and challenges associated with the expansion of AI infrastructure, including the need for increased regulation and oversight. In conclusion, OpenAI's proposal to expand the AMIC is a significant development in the US AI industry, with potential implications for the growth of the sector and the creation of jobs and economic growth. As the government considers the proposal, it will be important to weigh the potential benefits against the potential risks and challenges associated with the expansion of AI infrastructure.