David Sacks, President Donald Trump’s AI and crypto czar, has affirmed that there will be no federal bailout for AI companies. His comments come after OpenAI’s CFO set off a firestorm of debate by calling for federal “backstops” on loans to build AI data centers. The executive then walked back her comments, but Sacks definitely ruled out the idea.
CNBC reports that David Sacks, the White House AI and Crypto Czar under President Donald Trump, has made it unequivocally clear that the federal government will not be providing bailouts for AI companies.
Sacks’ comments came in response to remarks made by OpenAI CFO Sarah Friar during a conference on Wednesday. Friar discussed the possibility of establishing an ecosystem that includes private equity, banks, and a federal “backstop” or “guarantee” to help finance the company’s infrastructure investments. However, she later clarified her stance in a LinkedIn post, stating that OpenAI is not seeking a government backstop and that her use of the term “backstop” had clouded her point.
In a post on X, Sacks emphasized the strength and resilience of the U.S. AI industry, stating, “The U.S. has at least 5 major frontier model companies. If one fails, others will take its place.” In subsequent posts, Sacks added, “That said, we do want to make permitting and power generation easier. The goal is rapid infrastructure buildout without increasing residential rates for electricity.”
Sacks also gave Friar the benefit of the doubt, suggesting that her comments may have been misinterpreted. He wrote, “To give benefit of the doubt, I don’t think anyone was actually asking for a bailout. (That would be ridiculous.).”
Breitbart News previously reported that OpenAI CEO Sam Altman lost his cool when provided a softball question to defend the company’s massive spending:
When Gerstner directly asked Altman to explain how a company with $13 billion in revenue could justify $1.4 trillion in spending commitments, a visibly annoyed Altman retorted, “If you want to sell your shares, I’ll find you a buyer. Enough.” He went on to assert that there were plenty of people who would eagerly buy shares from any concerned investors. The question, from an OpenAI shareholder and supporter, was obviously designed to tee up Altman to make his case on the strength of OpenAI’s business.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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