In a tax filing submitted to the U.S. Internal Revenue Service (IRS), Meta described its artificial intelligence data centers as a massive experiment that could end in failure.
The filing classified processors with proven commercial success, including chips purchased from other companies and used at Meta's artificial intelligence facilities, as experimental materials.

Meta's tax liability fell by approximately $4 billion
IRS records show that the classification reduced Meta's 2025 tax liability by approximately $4 billion. The records identify Meta as the publicly traded company that benefited most from the incentive.

The tax credit provision dates back to the 1980s
Meta's strategy relies on a tax provision dating back to the 1980s. The provision provides tax credits for materials used in research aimed at promoting innovation, rather than materials used in standard commercial activities.
