AIThe Decoder1h ago
Meta dodges billions in US taxes by calling its AI data centers
Meta dodges billions in US taxes by calling its AI data centers experiments
TL;DRMeta saved $3.9B in taxes by labeling AI data centers as experiments.
Why it matters: Legal loophole exposes tax code weakness; could trigger IRS crackdown affecting entire tech industry.
Meta classifies its AI data centers as "pilot models" and Nvidia chips as experimental materials to save billions in federal taxes. In 2025 alone, that added up to $3.9 billion. The tax credit dates back to 1981, and even Meta's own accountants see the strategy as legally risky,…
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