Meta Saves Billions Using Tax Loophole for AI
Meta has saved billions of dollars in United States taxes by classifying its massive artificial intelligence data centers as experimental pilot models and treating Nvidia chips as research materials, according to a report by The New York Times cited by The Decoder. The tech giant secured $3.9 billion in tax savings for 2025 through the federal research credit, growing from $2 billion the previous year and $700 million in 2023. This makes Meta the largest beneficiary of the credit among publicly traded companies.
The experimental label contrasts with public statements from executives including Chief Executive Mark Zuckerberg, who announced plans to invest hundreds of billions of dollars into compute infrastructure to build artificial general intelligence. Zuckerberg previously stated that these facilities would drive the company core products and business rather than function as temporary trials. The research credit originates from a 1981 law that creators intended for knowledge and information rather than massive industrial compute clusters.
Meta defended its position by citing more than $200 billion spent on research and development over the past five years. However, the strategy carries legal risks. Meta disclosed in regulatory filings that the savings could face challenges, and its reserves for uncertain tax positions rose 45 percent to $18.74 billion. Accounting firm EY approved the strategy and reportedly assisted in structuring the approach, while also offering the same method to other companies seeking to offset artificial intelligence hardware purchases.
Based on reporting by the-decoder.com.
