https://www.theregister.com/2025/11/10/altman_ai_tax_credit/

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[aiml]

AI + ML

4 comment bubble on white

Altman sticks a different hand out, wants tax credits instead of gov
loans

4 comment bubble on white

We can't let supply chain shortages burst the bubble boy's balloon

icon Tobias Mann
Mon 10 Nov 2025 // 20:37 UTC
#
   
  

Free money is always better than a loan! OpenAI CEO Sam Altman
recently said he doesn't want government-backed loans to fuel his AI
ambitions, but he's more than okay with the idea of Uncle Sam handing
out tax credits under the US CHIPS Act to subsidize AI server
production, bit barns, and grid components.

Posting on the social network formerly known as Twitter on Friday,
the AI hype fiend said that the US had previously played a role in
critical infrastructure build-outs and emphasized the importance of
securing domestic chip production, adding that it shouldn't stop
there.

"We think US reindustrialization across the entire stack - fabs,
turbines, transformers, steel, and much more - will help everyone in
our industry, and other industries (including us)," Altman's X post
read.

[aiml]

Altman's comments come just days after OpenAI's Chief Global Affairs
Officer Chris Lehane penned [PDF] a letter to the White House
highlighting key strategic bottlenecks including access to adequate
power and calling on the administration to expand the Advanced
Manufacturing Investment Credit (AMIC) to incentivize not just US
chip production but servers, datacenters, and grid improvements as
well.

[aiml]
[aiml]

As of July, the AMIC -- passed as part of the US CHIPS Act -- provides
up to 35 percent tax credit on eligible infrastructure improvements
tied to US chip production.

For Altman, a tax credit is a far cry from a government-backed loan.
This is "super different from loan guarantees to OpenAI," he wrote.
"It would be good for the whole country, many industries, and all
players in those industries."

[aiml]

The idea that OpenAI might want government-backed loans to finance
its journey to the artificial general intelligence (AGI) promised
land has sparked no shortage of controversy. On Wednesday, CFO Sarah
Friar suggested that a federal "backstop" would open the door to
additional financing while speaking at the WSJ Tech Live event.

Friar later walked back her comments, clarifying that OpenAI wasn't
seeking loan guarantees itself, a point that Altman felt compelled to
emphasize in a lengthy X post.

"We believe that governments should not pick winners or losers, and
that taxpayers should not bail out companies that make bad business
decisions or otherwise lose in the market."

[aiml]

It's worth noting, however, that regardless of whether it's a
federally guaranteed loan or a tax credit, anything that benefits
OpenAI's partners is in the model dev's interests.

Altman's $500 billion Stargate bit barns initiative is going to run
into roadblocks eventually if there aren't enough chips, servers, or
power to support them. Therefore, anything that Uncle Sam does to
incentivize investments in these areas keeps the stream of hot air
flowing into the AI bubble for a little while longer.

  * OpenAI non-profit will run for-profit that has yet to make a
    profit
  * OpenAI's Altman and Friar walk back remarks about federal loan
    guarantees
  * AI's trillion dollar deal wheel bubbling around Nvidia, OpenAI
  * Microsoft just revealed that OpenAI lost more than $11.5B last
    quarter

Unfortunately for Altman, the cracks in this grand plan may be
starting to show. Also on Friday, Micron, which was awarded $6.1
billion in funding under the CHIPS Act last year, revealed it was
delaying construction of its memory chip plants in Clay, New York,
until at least 2030.

Micron is the sole supplier of American-made high-bandwidth memory
(HBM) used in Nvidia and AMD's most powerful accelerators.

The delay, first reported by the Syracuse Post-Standard, will also
see Micron reallocate about $1.2 billion of its CHIPS Act winnings to
its fab expansion in Idaho.

While Micron didn't offer much detail as to the reasons for the
delays, the paper cited Ryan McMahon, a local county official, as
saying that labor shortages and longer-than-expected construction
timelines may have impacted the plans. The Register reached out to
Micron for comment; we'll let you know if we hear anything back. (r)

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  * OpenAI
  * United States Department of Commerce

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  * ChatGPT
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  * DeepSeek
  * Disaster recovery
  * Gemini
  * Google AI
  * GPT-3
  * GPT-4
  * Large Language Model
  * Machine Learning
  * MCubed
  * Neural Networks
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