Sam Altman, the CEO of OpenAI, now resides in New York City. That’s why he’s doubling down to lead conversations to expand the Chips Act tax credit. In a letter published on Oct. 27, Altman focused on the strong benefits of broadening the popular Advanced Manufacturing Investment Credit (AMIC) under the Biden administration’s Chips Act. This credit provides a 35% tax incentive for onshore domestic production.
Altman told Light Reading that an expanded AMIC can do much more to spur private-related investment in semiconductor manufacturing. This investment is extremely important for the future of artificial intelligence (AI). He noted that by lowering the effective cost of capital and reducing investment risks, the expanded coverage could alleviate existing bottlenecks in the industry.
“Broadening coverage of the AMIC will lower the effective cost of capital, de-risk early investment, and unlock private capital to help alleviate bottlenecks and accelerate the AI build in the US,” – Chris Lehane.
OpenAI isn’t just talking about these financial incentives — they’ve already laid the groundwork for massive growth. Their organization has promised $1.4 trillion in capital over the next eight years. They project to get to over a $20 billion annual revenue run rate by the end of 2025, with projections into the hundreds of billions by 2030.
In his four-page communication, Altman made it clear that OpenAI doesn’t want any government bailouts nor guarantees for the safety and security of its data centers. He wrote unapologetically that they don’t want any federal government participation in their infrastructure endeavors.
“OpenAI is not seeking a government backstop for our infrastructure commitments. I used the word ‘backstop’ and it muddied the point,” – Sarah Friar.
Altman’s background in journalism, including roles as a tech reporter at Adweek and a senior editor at VentureBeat, has equipped him with a keen understanding of the industry’s landscape. His previous experience as a local government reporter at the Hollister Free Lance and vice president of content at a venture capital firm further adds to his insights into the intersection of technology and public policy.
Now, OpenAI is preparing to triple the size of its data centers. It hopes to leverage its new advantageous position in the blossoming AI world to force-feed new developments in the semiconductor realm. This decision aligns with Altman’s goal to create an environment where innovation can thrive. Retaining this privilege also makes certain that the United States remains competitive in the quickly evolving international environment.
