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OpenAI Letter Requesting Loan Guarantees Surfaces, Clashing With Altman’s Denial

The White House has ruled out bailouts, intensifying scrutiny of how the company will finance its $1.4 trillion buildout.

Overview

  • An October 27 letter from OpenAI to the White House asked for grants, cost-sharing, loans, or federal loan guarantees to expand AI data-center, server, and grid capacity using tools such as the Defense Production Act and DOE loan programs.
  • On November 6, CEO Sam Altman wrote that OpenAI does not have or want government guarantees for its data centers and said taxpayers should not bail out companies that fail.
  • OpenAI CFO Sarah Friar had floated a potential government “backstop” at a WSJ event before clarifying the company is not seeking a backstop for its infrastructure commitments.
  • White House AI advisor David Sacks said there will be no federal bailout for AI companies, while signaling support for faster permitting and power generation.
  • Altman reiterated projections of more than $20 billion in annualized revenue for 2025 and roughly $1.4 trillion in multiyear infrastructure commitments, as he pushed for expanding the Chips Act tax credit to cover AI servers, data centers, and grid components.