WASHINGTON / LONDON (IT BOLTWISE) – The US government has made it clear that it will not provide government aid to AI companies. This decision follows a discussion about the financial security of OpenAI, one of the leading companies in the field of artificial intelligence. Despite OpenAI’s high investment commitments, the government sees no need for a bailout as the market offers enough alternatives.
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The US government has made it clear that it will not provide government aid to AI companies. This decision was announced by David Sacks, an advisor to the US President on artificial intelligence. In a post on Platform If one of these companies failed, others would take its place.
This announcement came after a call from Sarah Friar, OpenAI’s chief financial officer, who cited government backing, along with private investors and banks, as helpful in covering the company’s infrastructure investments. However, in a later post on LinkedIn, Friar clarified that OpenAI is not seeking government protections. Her choice of words led to misunderstandings and she simply wanted to emphasize that building industrial capacity requires the participation of both the private sector and the US government.
Sam Altman, CEO of OpenAI, responded to the criticism and stated that there are few reasons why OpenAI could fail. One such reason would be inadequate access to computing power. The AI industry’s heavy investments in computing infrastructure are making investors nervous as they fear the high spending could negatively impact expected returns.
OpenAI has committed $1 trillion in investment commitments over the next decade, while the company’s $500 billion valuation is significantly higher than its revenue, which is estimated at about $13 billion in 2025. This discrepancy between valuation and sales creates additional skepticism among investors.
The US government’s decision not to provide federal aid could have far-reaching effects on the AI industry. While some companies may have difficulty financing their investments, this could also lead to greater consolidation in the market, with only the strongest and most innovative companies surviving.
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