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‘No federal bailout for AI’
David Sacks, White House AI and Crypto Czar, attends a meeting of the White House Task Force on Artificial Intelligence (AI) Education in the East Room at the White House in Washington, D.C., U.S., September 4, 2025.
Brian Snyder | Reuters
Venture capitalist David Sacks, who is serving as President Donald Trump’s artificial intelligence and crypto czar, said Thursday that there will be “no federal bailout for AI.”
“The U.S. has at least 5 major frontier model companies. If one fails, others will take its place,” Sacks wrote in a post on X.
Sacks’ comments came after OpenAI CFO Sarah Friar said Wednesday that the startup wants to establish an ecosystem of private equity, banks and a federal “backstop” or “guarantee” that could help the company finance its infrastructure investments.
She softened her stance later in a LinkedIn post and said OpenAI is not seeking a government backstop for its infrastructure commitments. She said her use of the word “backstop” clouded her point.
“As the full clip of my answer shows, I was making the point that American strength in technology will come from building real industrial capacity which requires the private sector and government playing their part,” Friar wrote.
OpenAI and the White House did not immediately respond to CNBC’s request for comment.
