Meta classifies its AI data centers as pilot models for tax purposes. It uses this to claim billions in research tax credits. The credits cover costly AI chips bought from vendors like Nvidia. Meta’s own accountants warn the IRS may overturn these savings. The strategy relies on an aggressive interpretation of a 1980s tax break. Experts call the approach legally risky. Meta publicly calls its AI push a success. Internally it frames the data centers as an experiment that could fail.
What changed
Data centers were treated as standard business operations for tax purposes.
What it unlocks
Claiming a taxpayer discount on AI computer chips under a research tax credit.
- billions in tax credits claimed
- 1980s tax credit for research
Sources