Government guarantee for AI firms
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OpenAI walks back remarks on government support for AI spending spree
Yahoo Financeยท 2025-11-06 18:24
Core Viewpoint - OpenAI's CFO Sarah Friar initially supported the idea of a federal backstop for AI firms to sustain their significant R&D expenditures, but later clarified that OpenAI is not seeking such government support, emphasizing the need for collaboration between the government and the private sector [1][2]. Group 1: Government Support and Backstop - Friar's comments at a tech conference suggested that a government guarantee could lower financing costs and increase the amount of debt that AI firms could take on [2]. - She highlighted the U.S. government's proactive stance on AI as a national strategic asset and the importance of maintaining competitive edge against countries like China [2]. - The White House responded negatively to the idea of federal bailouts for AI firms, with David Sacks stating that there would be no federal bailout and that other companies would fill the gap if one fails [3]. Group 2: OpenAI's Financial Position - OpenAI is currently valued at $500 billion and has secured $1.1 trillion in agreements with chipmakers and cloud computing firms to support its growth [3]. - The company recently announced a $38 billion deal with Amazon to expand its cloud computing services over the next seven years [3]. Group 3: Company Stance on Government Intervention - CEO Sam Altman expressed that governments should not intervene to pick winners or losers in the market and that taxpayers should not bail out companies that make poor business decisions [4].