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Meta tells the IRS its AI data centres are experiments, NYT reports
Meta tells the IRS that its AI data centres are an experiment that could fail, The New York Times reported on Wednesday. That lets Meta claim a research tax credit on the AI chips it buys. The credit cut almost $4bn off its tax bill last year.
Kashmir Hill, Jesse Drucker, Eli Tan and Mike Isaac reported the story for The New York Times.
They cited four people with knowledge of Meta’s operations and a review of securities filings. No outlet had reported Meta’s use of the credit for data centres before.
“Our investments in A.I. are accelerating every major part of our core business,” Mark Zuckerberg has told investors.
For tax purposes, Meta classifies its data centres as “pilot models”, according to the Times. The research and experimentation tax credit, created in 1981, gives companies a rebate for supplies used in an experiment.
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Read the full story at The Next Web