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White House Rejects AI Bailouts as OpenAI Faces Scrutiny Over Loan-Guarantee Letter

OpenAI touts a $20 billion revenue run rate for 2025 alongside a $1.4 trillion buildout plan.

Overview

  • Trump administration AI adviser David Sacks said there will be no federal bailout for AI companies, addressing concerns raised by OpenAI’s financing push.
  • CFO Sarah Friar told a WSJ event a federal “backstop” could lower borrowing costs for chips and data centers, then clarified on LinkedIn that OpenAI is not seeking a government backstop.
  • An October 27 OpenAI letter to the White House requested tax credits, grants, loans, and federal loan guarantees to expand AI data-center and grid capacity, citing DPA Title III and DOE loan programs.
  • CEO Sam Altman stated OpenAI does not have or want government guarantees for its data centers and projected an annualized revenue run rate above $20 billion in 2025, with ambitions for much higher revenue by 2030.
  • OpenAI says it has roughly $1.4 trillion in infrastructure agreements across chips, cloud, and power, intensifying investor questions about financing, counterparty exposure, and system-wide risk.