Sam Altman backs away from OpenAI's statements about possible U.S. gov't AI industry bailouts — company continues to lobby for financial support from the industry

OpenAI CEO Sam Altman clarified on Wednesday, November 6, that “we [OpenAI] do not have or want government guarantees for OpenAI datacenters,” following a wave of speculation prompted by recent comments from the company’s chief financial officer.

Altman’s post on X follows a policy document submitted by OpenAI proposed expanded federal support for the infrastructure needed to scale artificial intelligence systems, positioning AI data centers and related equipment as eligible for U.S. manufacturing incentives. His remarks come just hours after Trump's AI chief, David Sacks, stated that there would be "no federal bailout for AI."

The original confusion stemmed from remarks made by CFO Sarah Friar, who said at a Bloomberg event that a federal “backstop” could help unlock investment for future data center expansion. Those comments, widely interpreted as a request for taxpayer guarantees, drew scrutiny given the scale of AI server costs and energy requirements. While Altman has said OpenAI is investing heavily in future compute, it is not seeking a bailout for its facilities. “We plan to be a wildly successful company, but if we get it wrong, that’s on us,” he said.

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Behind the scenes, however, OpenAI is still seeking federal support, just not for itself directly. In an October 27 submission to the White House Office of Science and Technology Policy, the company called for updating the Advanced Manufacturing Investment Credit (AMIC) to include “AI server production; and AI data centers,” alongside support for grid-related hardware like high-voltage transformers, HVDC converters, and transmission lines.

OpenAI’s proposal places AI infrastructure in the same policy lane as chipmaking, suggesting Washington treat large-scale inference deployments and their supply stacks as a manufacturing priority. OpenAI’s filing also calls for targeted grants, loans, or loan guarantees to help accelerate U.S.-based production of the electrical equipment needed to power AI clusters. “Direct funding could also help shorten lead times for critical grid components—transformers, HVDC converters, switchgear, and cables—from years to months,” the company wrote.

This is a notable distinction because, although OpenAI isn’t asking for the federal government to underwrite its data center projects, it is advocating for manufacturing and infrastructure subsidies that could indirectly benefit hyperscalers, OEMs, and power suppliers building out the next wave of AI compute. The company has not disclosed how much of its future capacity buildout would rely on public incentives like those that could become available through AMIC.

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Luke James is a freelance writer and journalist. Although his background is in legal, he has a personal interest in all things tech, especially hardware and microelectronics, and anything regulatory.

28 Comments Comment from the forums

SSGBryan

They are looking for a bag holder when OpenAI implodes.
Reply
George³

Government, please save this AI fraud balloon with tax payers money.
Reply
Notton

CFO Sarah said the quiet part out loud, so now Sam have to be like...
"Please don't bail us out!" nudge nudge wink wink
Reply
JamesJones44

It's crazy we've come to live in a world where bailouts are asked for before there is even a problem...
Reply
SSGBryan

There isn't a breakthrough app that is going to justify the amount of money that has been spent.

That is the problem.
Reply
rm12

SSGBryan said:
There isn't a breakthrough app that is going to justify the amount of money that has been spent.

That is the problem.
I don't know whether we need to wait for the ultimate app.
Metrics about how applying AI is improving business results would be very helpful.
Reply
SSGBryan

rm12 said:
I don't know whether we need to wait for the ultimate app.
Metrics about how applying AI is improving business results would be very helpful.
If metrics existed - OpenAI would be trumpeting it. The fact they haven't is the tell.

Then there is OpenAI's burn rate. Making a few millions every quarter doesn't cover billions of VC funding per quarter.
Reply
extremepcs1

The bubble is about to pop. The stock market is already a mess the last few days because investors know it will soon.
Reply
Dementoss

extremepcs1 said:
The bubble is about to pop. The stock market is already a mess the last few days because investors know it will soon.
On another forum, of which I am a member, there is a member who is a computing journalist and author, of many years experience. It's been his opinion that the AI bubble is going to burst, for some time. I agree with him, all this rampant spending, with little return, is unsustainable.
Reply
rm12

I had a chat with an ai :)

I asked to have 2010-2019 as a base line, and asked what good metrics would be for business results. Then I asked how they compare to the last one or two years. Now, if there would be results, they only would start to appear now, and correlation is not causality.

Whatever you want to read into it, productivity and other metrics for firms using ai seems up a bit, like one to two percent and that are not AI firms. But that is within a year.

So, that is the work that needs to be done now, baselining and when tech is more widespread then it is now, what is the difference. All new tech need to mature, need to become more efficient, and needs to applied/used more easily.

Are the investments that have been done, worth it? I don't know yet.
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