Trump AI Czar Says 'No Federal Bailout For AI' After OpenAI CFO's Comments

Venture capitalist David Sacks, who is serving as President Donald Trump's AI and crypto czar, said Thursday that there will be "no federal bailout for AI." From a report: "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. [...] Sacks said the Trump administration does want to make permitting and power generation easier, and that the goal is to facilitate rapid infrastructure buildouts without raising residential electricity rates. "To give benefit of the doubt, I don't think anyone was actually asking for a bailout. (That would be ridiculous.)," he wrote.

Read more of this story at Slashdot.