Meta cut $3.9 billion in tax by calling data centers experiments
Meta told US tax authorities its AI data centers were experimental pilot models. The research credit cut its 2025 tax bill by $3.9 billion.
The method
From late 2024 Meta separated chips for AI data centers from those for ordinary ones for tax purposes, describing AI facilities as experimental pilot models to claim the research and development credit, including on costly Nvidia chips.
Size and risk
The credit cut its tax bill by $700 million in 2023, $2 billion in 2024 and $3.9 billion in 2025, the most of any listed company. Meta’s own accountants warned the IRS could challenge the treatment.
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