NYT probe: Meta claims AI data centers are 'experimental' to dodge billions in federal taxes
TuhinChakr · x · 2026-10-01
A major New York Times investigation reveals Meta has been labeling its AI data centers as 'experimental' since summer 2024 to claim the federal research & experimentation tax credit, saving billions on its data center buildout.
- Externally, Zuckerberg tells investors AI investment is a tremendous success accelerating the core business; in tax filings to the IRS, Meta calls the same data centers a giant experiment that could fail.
- Tax experts call the interpretation 'wild and out there'; Meta's own accountants flagged in securities filings that the strategy rests on shaky legal ground.
- Reporting by Kashmir Hill, Jesse Drucker, Eli Tan and Mike Isaac, based on four people with knowledge of the company's operations.
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