Trump tech czar slams OpenAI scheme for federal ‘backstop’ on spending — forcing Sam Altman to backtrack

OpenAI is under the spotlight after seemingly asking for the federal government to provide guarantees and loans for its investments.

Now, as the company is walking back its statements, a recent OpenAI letter has resurfaced that may prove it is talking in circles.

‘We’re always being brought in by the White House …’

The artificial intelligence company is predominantly known for its free and paid versions of ChatGPT. Microsoft is its key investor, with over $13 billion sunk into the company, holding a 27% stake.

The recent controversy stems from an interview OpenAI chief financial officer Sarah Friar gave to the Wall Street Journal. Friar said in the interview, published Wednesday, that OpenAI had goals of buying up the latest computer chips before its competition could, which would require sizeable investment.

“This is where we’re looking for an ecosystem of banks, private equity, maybe even governmental … the way governments can come to bear,” Friar said, per Tom’s Hardware.

Reporter Sarah Krouse asked for clarification on the topic, which is when Friar expressed interest in federal guarantees.

“First of all, the backstop, the guarantee that allows the financing to happen, that can really drop the cost of the financing but also increase the loan to value, so the amount of debt you can take on top of an equity portion for —” Friar continued, before Krouse interrupted, seeking clarification.

“[A] federal backstop for chip investment?”

“Exactly,” Friar said.

Krouse further bored in on the point when she asked if Friar has been speaking to the White House about how to “formalize” the “backstop.”

“We’re always being brought in by the White House, to give our point of view as an expert on what’s happening in the sector,” Friar replied.

After these remarks were publicized, OpenAI immediately backtracked.

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On Wednesday night, Friar posted on LinkedIn that “OpenAI is not seeking a government backstop” for its investments.

“I used the word ‘backstop’ and it muddied the point,” she continued. She went on to claim that the full clip showcased her point that “American strength in technology will come from building real industrial capacity which requires the private sector and government playing their part.”

On Thursday morning, David Sacks, President Trump’s special adviser on crypto and AI, stepped in to crush any of OpenAI’s hopes of government guarantees, even if they were only alleged.

“There will be no federal bailout for AI,” Sacks wrote on X. “The U.S. has at least 5 major frontier model companies. If one fails, others will take its place.”

Sacks added that the White House does want to make power generation easier for AI companies, but without increasing residential electricity rates.

“Finally, to give benefit of the doubt, I don’t think anyone was actually asking for a bailout. (That would be ridiculous.) But company executives can clarify their own comments,” he concluded.

The saga was far from over, though, as OpenAI CEO Sam Altman seemingly dug the hole even deeper.

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By Thursday afternoon, Altman had released a lengthy statement starting with his rejection of the idea of government guarantees.

“We do not have or want government guarantees for OpenAI datacenters. We believe that governments should not pick winners or losers, and that taxpayers should not bail out companies that make bad business decisions or otherwise lose in the market. If one company fails, other companies will do good work,” he wrote on X.

He went on to explain that it was an “unequivocal no” that the company should be bailed out. “If we screw up and can’t fix it, we should fail.”

It wasn’t long before the online community started claiming that OpenAI was indeed asking for government help as recently as a week prior.

As originally noted by the X account hilariously titled “@IamGingerTrash,” OpenAI has a letter posted on its own website that seems to directly ask for government guarantees. However, as Sacks noted, it does seem to relate to powering servers and providing electrical capacity.

Dated October 27, 2025, the letter was directed to the U.S. Office of Science and Technology Policy from OpenAI Chief Global Affairs Officer Christopher Lehane. It asked the OSTP to “double down” and work with Congress to “further extend eligibility to the semiconductor manufacturing supply chain; grid components like transformers and specialized steel for their production; AI server production; and AI data centers.”

The letter then said, “To provide manufacturers with the certainty and capital they need to scale production quickly, the federal government should also deploy grants, cost-sharing agreements, loans, or loan guarantees to expand industrial base capacity and resilience.”

Altman has yet to address the letter.

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By mfnnews