{"id":6545,"date":"2025-11-07T16:11:30","date_gmt":"2025-11-07T16:11:30","guid":{"rendered":"https:\/\/musictechohio.online\/site\/trump-admin-no-ai-bailout\/"},"modified":"2025-11-07T16:11:30","modified_gmt":"2025-11-07T16:11:30","slug":"trump-admin-no-ai-bailout","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/trump-admin-no-ai-bailout\/","title":{"rendered":"Trump Admin Says It\u2019s Not Bailing Out the AI Industry Regardless of How Hard It Crashes"},"content":{"rendered":"
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During the Wall Street Journal<\/em>\u2018s Tech Live conference on Wednesday, OpenAI chief financial officer Sarah Friar hinted at the possibility that the government could \u201cbackstop the guarantee that allows the financing to happen\u201d as the AI industry continues to take on even more debt.<\/p>\n

Friar regretted her comment almost immediately, clarifying in a subsequent post on LinkedIn<\/a> that \u201cOpenAI is not seeking a government backstop for our infrastructure commitments.\u201d<\/p>\n

The suggestion clearly caused immense chagrin to OpenAI\u2019s leadership; even CEO Sam Altman emerged to put out the fire, tweeting<\/a> that \u201cwe do not have or want government guarantees for OpenAI data centers.\u201d<\/p>\n

Yet the damage was already done, exacerbating an already testy stock market. Ongoing fears over an AI bubble triggered a major tech selloff earlier this week \u2014 and reassurances by president Donald Trump\u2019s \u201cAI czar\u201d David Sacks that there will be \u201cno federal bailout for AI<\/a>\u201d haven\u2019t helped.<\/p>\n

Shares of AI chipmaker Nvidia are continuing their tumble, sliding nearly four percent in early trading on Friday. The company\u2019s shares are down over 13 percent so far this week; AI software giant Palantir was hit even harder, currently down over 16 percent so far this week.<\/p>\n

And if the AI bubble really does burst \u2014 a calamity that some experts worry could take the entire US economy with it<\/a> \u2014 the Trump administration is saying that the government wouldn\u2019t intervene. That\u2019s despite the White House being extremely amenable to the industry\u2019s needs, with the president going as far announcing a $500 billion AI infrastructure initiative<\/a>, dubbed Stargate, earlier this year.<\/p>\n

In a tweet<\/a>, Sacks clarified that competition would sort out any such eventuality, arguing that the US \u201chas at least five major frontier model companies. If one fails, others will take its place.\u201d<\/p>\n

At the same time, Sacks said that \u201cwe do want to make permitting and power generation easier\u201d in a followup<\/a>. \u201cThe goal is rapid infrastructure buildout without increasing residential rates for electricity.\u201d<\/p>\n

Altman, Friar, and Sacks\u2019 coordinated efforts to extinguish the fire that the CFO\u2019s \u201cbackstop\u201d comments ignited highlight an AI industry in a precarious state.<\/p>\n

Even before Friar\u2019s comments on Wednesday, investors had become concerned that AI industry stalwarts, like Nvidia and Palantir, may be grossly overvalued, with analysts predicting a correction following months of soaring valuations.<\/p>\n

What the situation looks like for OpenAI, which, according to Friar, isn\u2019t looking to go public any time soon<\/a>, remains far more murky.<\/p>\n

In his latest tweet, Altman argued that \u201cwe expect to end this year above $20 billion in annualized revenue run rate and grow to hundreds of billion by 2030.\u201d That\u2019s despite \u201clooking at commitments of about $1.4 trillion over the next 8 years.\u201d <\/p>\n

In other words, OpenAI would have to massively grow its current revenue \u2014 just to afford soaring debt payments in the coming years without any government assistance.<\/p>\n

More on OpenAI: <\/strong>OpenAI\u2019s Browser Avoids Large Part of the Web Like the Plague<\/em><\/a><\/p>\n

The post Trump Admin Says It\u2019s Not Bailing Out the AI Industry Regardless of How Hard It Crashes<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

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During the Wall Street Journal\u2018s Tech Live conference on Wednesday, OpenAI chief financial officer Sarah Friar hinted at the possibility that the government could \u201cbackstop the guarantee that allows the…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177,3841,3842,179],"tags":[],"class_list":["post-6545","post","type-post","status-publish","format-standard","hentry","category-artificial-intelligence","category-ethics","category-future-society","category-openai"],"_links":{"self":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/6545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/comments?post=6545"}],"version-history":[{"count":0,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/6545\/revisions"}],"wp:attachment":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/media?parent=6545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/categories?post=6545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/tags?post=6545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}