The White House’s Crypto and AI Czar draws a line on the future of AI financing, as US officials reject safety-net assumptions for private AI giants.
In a new post on X, David Sacks says the federal government will not step in to rescue AI developers, clarifying that market forces, not public guarantees, will decide winners in the frontier-model race.
“There will be no federal bailout for AI. The US has at least five major frontier model companies. If one fails, others will take its place. That said, we do want to make permitting and power generation easier. The goal is rapid infrastructure buildout without increasing residential rates for electricity.”
While he distances the administration from claims of corporate rescue requests, Sacks says OpenAI’s recent commentary may have been misinterpreted.
“Finally, to give the benefit of the doubt, I don’t think anyone was actually asking for a bailout. (That would be ridiculous.) But company executives can clarify their own comments.”
The comments come after OpenAI CFO Sarah Friar floated the idea that the ChatGPT creator was hoping the US government would help guarantee financing for chips.
OpenAI CEO Sam Altman clarifies the firm’s position on a government rescue, saying the federal government should target industrial capacity rather than backstopping company balance sheets.
“The government has played a role in critical infrastructure builds. Our public submission (posted on our blog) shares our thinking and suggests ideas for how the US government can support domestic supply chain/manufacturing.”
Altman says supply-chain independence and industrial policy sit at the heart of the request, with an emphasis on broad re-industrialization and sector-wide benefit rather than company-specific guarantees.
“We think US reindustrialization across the entire stack–fabs, turbines, transformers, steel, and much more–will help everyone in our industry, and other industries (including us). To the degree the government wants to do something to help ensure a domestic supply chain, great.
But that’s super different than loan guarantees to OpenAI, and we hope that’s clear. It would be good for the whole country, many industries, and all players in those industries.”
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