‘No federal bailout for AI’
White House AI and Crypto Czar David Sacks attends the White House Artificial Intelligence (AI) Education Task Force meeting in the East Room at the White House on September 4, 2025 in Washington, DC, USA.
Brian Snyder | Reuters
David Sacks, the venture capitalist who served as President Donald Trump’s AI and crypto czar, said Thursday that “there will be no federal bailout for AI.”
“There are at least 5 major pioneering model companies in the United States. If one fails, others will take its place,” Sacks wrote. a post In X.
Sacks’ comments come after OpenAI CFO Sarah Friar said Wednesday that the startup wants to build an ecosystem of private capital, banks and a federal “backstop” or “guarantee” that could help the company finance infrastructure investments.
He later softened his stance LinkedIn post and that OpenAI is not seeking government support for its infrastructure commitments. He said his use of the words “backstop” clouded his view.
“As the full clip of my answer shows, I was making the point that America’s strength in technology will come from building true industrial capacity, which requires the private sector and government to play their roles,” Friar wrote.
The White House did not immediately respond to CNBC’s request for comment. OpenAI referred CNBC to Friar’s LinkedIn post.
Sacks said the Trump administration wants to streamline permitting and energy production, and its goal is to facilitate rapid infrastructure construction without increasing residential electricity rates.
“For the benefit of the doubt, I don’t think anyone actually wants a bailout. (That would be ridiculous),” he wrote.
