The OpenAI executive gaffe controversy, Trump advisor remarks: If AI companies fail, they fail, the U.S. government will not bail them out

After David Sacks, an AI advisor to the Trump administration, clearly stated that "there will be no government bailouts in the field of artificial intelligence," a heated debate about the future financing paths of the AI industry and the role of the government quickly escalated.

According to Wall Street Watch, on Wednesday, OpenAI Chief Financial Officer Sarah Friar mentioned at a technology conference in California that OpenAI is "looking for an ecosystem composed of banks and private equity" to support its infrastructure development, and hinted that the U.S. government could guarantee financing for data centers.

Then on Thursday, David Sacks responded on social media:

There are at least five major frontier AI model companies in the U.S., and if one fails, others will take its place.

He added that the U.S. government indeed hopes to simplify the approval process and increase power supply, aiming to rapidly advance infrastructure construction without raising residential electricity prices. Finally, Sacks clarified in the comments:

To avoid misunderstanding, I think no one is actually asking for a government bailout. (That would be absurd.) But company executives can clarify their statements themselves.

As the situation intensified, OpenAI CEO Altman also responded on social media:

We do not need or want the U.S. government to guarantee financing for OpenAI's data centers.

Executive Comments Spark Controversy, OpenAI Issues Urgent Clarification

In response to the White House advisor's rebuttal, Friar later softened her stance on social media.

She stated that her use of the term "backstop" "blurred her point," and expressed:

What I meant to convey is that America's technological strength will come from building real industrial capacity, which requires both the private sector and the government to play their respective roles.

A spokesperson for OpenAI also told the media that Friar's comments referred to the entire AI industry rather than OpenAI, and the company "currently" has no plans to seek government support.

Company CEO Sam Altman also published a lengthy clarification on social media. He explicitly stated:

We believe the U.S. government should not artificially decide which companies will win and which will lose, and taxpayer money should not be used to bail out companies that make poor business decisions or fail in the market. If one company fails, others will continue to contribute

OpenAI's Growth Gamble, Betting on Future Massive Demand

In the face of external financial doubts, Sam Altman provided the company's explanation and vision in his clarifying article, depicting a gamble based on future exponential growth.

Altman predicts that OpenAI is expected to achieve an annualized revenue of over $20 billion by the end of this year and grow to hundreds of billions before 2030. He explained:

The reason we must make huge investments now is that we are building the infrastructure for a future AI-driven economy. For OpenAI, the risk of not having enough computing power is greater and more likely to occur than the risk of having too much computing power.

He reiterated his faith in market forces:

If we mess up and can't fix it, we should fail, and other companies will continue to do the right thing. That's how capitalism works.

He emphasized that if the company bets wrong, the consequences will be handled by the market rather than the government. Altman stated:

OpenAI's mission requires it to apply AI to solve problems like curing diseases as soon as possible, and believes that a world rich in AI resources and low-cost will greatly improve people's lives.

OpenAI's Huge Investment and "Circular Financing"

The debate over "government guarantees" is underpinned by growing market concerns about OpenAI's financial model.

Reports indicate that OpenAI has committed to investing over $1.4 trillion in AI infrastructure, while its current annualized revenue is only in the tens of billions.

Previously, in a podcast, when investor Brad Gerstner asked how to afford such a massive investment, Altman's response was:

If you want to sell your shares, I will find you a buyer.

Meanwhile, OpenAI's business model is also under strict scrutiny.

In recent months, the market has increasingly scrutinized the soaring valuations of AI companies and the accelerated spending of tech companies on data centers and chips. Critics have pointed out that some transactions between OpenAI and companies like NVIDIA are suspected of involving "circular financing arrangements."

Wall Street Insight previously mentioned that Morgan Stanley published a report indicating insufficient disclosure of circular structures, making it difficult for investors to assess the real risks. The report analyzed that these complex agreements, while helping to accelerate the construction of data centers and lock in capacity, also make it difficult for outsiders to see the true business logic.

For example, supplier funding support may allow customers to gain purchasing power beyond what their own cash flow can support, while buyback agreements may shift the risk back to suppliers, thereby superficially exaggerating market demand.

Regarding such statements, Friar Technology Conference firmly denied:

I absolutely do not think this is cyclical. A lot of work over the past year has been to diversify the supply chain. We are now just building a complete infrastructure to bring more computing power into the world.

She believes that all parties are working together to build infrastructure to provide the world with more computing power