Meta dodges billions in US taxes by calling its AI data centers experiments

Meta has classified its AI data centers as experimental pilot models and Nvidia hardware as research equipment to claim billions in federal tax credits. By utilizing a 1981 tax code provision intended for research and development, the company reportedly reduced its 2025 tax liability by $3.9 billion. This accounting strategy faces scrutiny from internal auditors who consider the legal interpretation risky. If challenged by regulators, the approach could lead to significant financial liabilities for the company.