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3h ago

OpenAI Projects $20 Billion Revenue Run Rate as White House Rejects AI Bailouts

Investor concern is now focused on how the company will fund roughly $1.4 trillion in long-term data center commitments.

OpenAI compute bill
President Donald Trump's "AI czar" David Sacks announced that there will be "no federal bailout for AI" — freaking out investors further.
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OpenAI chief financial officer Sarah Friar said that the government could "backstop the guarantee that allows the financing to happen."

Overview

  • White House AI adviser David Sacks said there will be no federal bailout for AI firms, responding to speculation after this week’s financing remarks.
  • OpenAI CFO Sarah Friar clarified that the company is not seeking a government backstop and said an IPO is not on the table right now.
  • CEO Sam Altman reiterated that OpenAI does not have or want government guarantees and argued taxpayers should not rescue private companies.
  • Altman said OpenAI expects to exceed a $20 billion annualized revenue run rate in 2025 even as the company remains unprofitable at a roughly $500 billion valuation.
  • AI-linked stocks fell this week as funding questions persisted, with Nvidia down about 13% and Palantir down about 16% for the week, according to market reports.