OpenAI’s CFO Sarah Friar (pictured) suggested the US government “backstop the guarantee that allows the financing to happen” at the Wall Street Journal’s Tech Live event on Wednesday.
Yesterday, David Sacks, Chair of the President’s Council of Advisors on Science and Technology, stated: “There will be no federal bailout for AI. If one fails, others will take its place.”
Private credit funding from the shadow banking sector to the AI industry is currently running at around $50 billion per quarter over the last three quarters of 2025, according to Fortune.
OpenAI has committed to spending more than $1.4 trillion on AI infrastructure
, though the company is unprofitable with revenues of $13 billion, and CEO Sam Altman has told employees in the past that the company’s long-term goal is to build 250 gigawatts worth of computing capacity by 2033 which would cost $10 trillion.
Yesterday, Friar and Altman stated in social-media posts that the company has not asked for government guarantees. Nonetheless, the fact that AI execs are thinking this way has rattled market analysts.
“OpenAI retracting the statement after it was rejected by the market does not allay any fears,” said Michael O’Rourke, chief market strategist at Jonestrading, according to Bloomberg.
Putting pressure on the US government, Nvidia CEO said earlier this week that he thinks China will win the AI race.
There are signs that the sell-off in AI is beginning. Shares of Nvidia dropped 3.7% on Thursday and have fallen 9% in the last three days, AMD dropped 7.3% yesterday and Palantir dropped 6.8% yesterday while Oracle has dropped 36% since September.
