Category: Breitbart
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.
RELATED: Artificial intelligence is not your friend
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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‘FIRE HOCHUL’: Stefanik officially launches bid to save New York from the ‘Worst Governor in America’
New York Rep. Elise Stefanik (R) on Friday officially announced her run for governor, challenging incumbent Gov. Kathy Hochul (D).
Stefanik called Hochul the “Worst Governor in America” and slammed her for endorsing Democratic Socialist Zohran Mamdani, the New York City mayor-elect.
‘I have a record of flipping a district that was previously held by a Democrat.’
“Under her failed leadership, New York is the most unaffordable state in the nation with the highest taxes, highest energy, utilities, rent, and grocery bills,” Stefanik wrote Friday in a post on social media. “When New Yorkers were looking for leadership from our Governor, she bent the knee to the raging Defund the Police, Tax Hiking Communist causing catastrophe for New York families.”
Stefanik vowed that under her leadership, she would “make New York affordable and safe FOR ALL.”
“Democrats, Republicans, and Independents will unify to save our state,” she continued. “It’s time to: FIRE HOCHUL. SAVE NEW YORK.”
Stefanik released a campaign video highlighting New York’s affordability crisis and the influx of crime, prompting middle-class residents to flee the state, which she blamed on Hochul’s failed policies.
RELATED: SHOCK POLL: Republican leads NY Governor Hochul one year before the election
Elise Stefanik. Photo by Andrew Harnik/Getty Images
On Friday, Stefanik told Fox News’ “Fox & Friends” that “toxic” Hochul “bent the knee” to Mamdani “because she is hemorrhaging support, even in her own party.”
Hochul won by 5.8 points in 2022 against Republican candidate Lee Zeldin, who is now the Environmental Protection Agency administrator under President Donald Trump. The last time New Yorkers elected a Republican governor was in 2002. Despite the long streak of Democrat wins, Stefanik remains unfazed.
“I have a record of flipping a district that was previously held by a Democrat,” Stefanik stated. “I’ve won every primary and general election, and we’ve overperformed — winning not just Republicans but independents and a fair share of Democrats as well — because my record has been delivering results for families, for small businesses, for our veterans, for our farmers.”
Stefanik has secured endorsements from 34 Republican state assembly members and 12 state senators, according to her campaign. New York GOP Chairman Ed Cox also endorsed Stefanik, calling her “a unifier and a party builder with the brains, the guts, and the resources to win statewide next year.”
RELATED: Trump slams Hochul’s endorsement of ‘communist’ Mamdani: ‘No reason to be sending good money’
Kathy Hochul. Photo by Michael M. Santiago/Getty Images
Hochul’s campaign fired back at Stefanik, describing her as a “sellout” because she has been Trump’s “number-one cheerleader in Congress and his right-hand woman in his war on New York.” The governor’s campaign accused the lawmaker of “gutting health care, jacking up costs with expensive tariffs, and cutting funding for our police, schools, and hospitals.”
“Apparently, screwing over New Yorkers in Congress wasn’t enough — now she’s trying to bring Trump’s chaos and skyrocketing costs to our state. While Stefanik puts Trump first and New York last, Governor Hochul is lowering costs, cutting middle-class taxes, and fighting for the New Yorkers Stefanik abandoned,” Hochul’s campaign communications director Sarafina Chitika said.
Blaze News contacted the campaigns of Stefanik and Hochul for comment but did not receive a response.
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The kids aren’t all right — they’re being seduced by socialism
Something is breaking in America’s young people. You can feel it in every headline, every grocery bill, every young voice quietly asking if the American dream still means anything at all.
For many, the promise of America — work hard, build something that lasts, and give the next generation a better start — feels like it no longer exists. Home ownership and stability have become luxuries for a fortunate few.
Capitalism is not a perfect system. It is flawed because people are flawed, but it remains the only system that rewards creativity and effort rather than punishing them.
In that vacuum of hope, a new promise has begun to rise — one that sounds compassionate, equal, and fair. The promise of socialism.
The appeal of a broken dream
When the American dream becomes a checklist of things few can afford — a home, a car, two children, even a little peace — disappointment quickly turns to resentment. The average first-time homebuyer is now 40 years old. Debt lasts longer than marriages. The cost of living rises faster than opportunity.
For a generation that has never seen the system truly work, capitalism feels like a rigged game built to protect those already at the top.
That is where socialism finds its audience. It presents itself as fairness for the forgotten and justice for the disillusioned. It speaks softly at first, offering equality, compassion, and control disguised as care.
We are seeing that illusion play out now in New York City, where Zohran Mamdani — an open socialist — has won a major political victory. The same ideology that once hid behind euphemisms now campaigns openly throughout America’s once-great cities. And for many who feel left behind, it sounds like salvation.
But what socialism calls fairness is submission dressed as virtue. What it calls order is obedience. Once the system begins to replace personal responsibility with collective dependence, the erosion of liberty is only a matter of time.
The bridge that never ends
Socialism is not a destination; it is a bridge. Karl Marx described it as the necessary transition to communism — the scaffolding that builds the total state. Under socialism, people are taught to obey. Under communism, they forget that any other options exist.
History tells the story clearly. Russia, China, Cambodia, Cuba — each promised equality and delivered misery. One hundred million lives were lost, not because socialism failed, but because it succeeded at what it was designed to do: make the state supreme and the individual expendable.
Today’s advocates insist their version will be different — democratic, modern, and kind. They often cite Sweden as an example, but Sweden’s prosperity was never born of socialism. It grew out of capitalism, self-reliance, and a shared moral culture. Now that system is cracking under the weight of bureaucracy and division.
RELATED: The triumph — for now — of New York’s Muslim socialist mayor
Photo by Angela Weiss / Contributor via Getty Images
The real issue is not economic but moral. Socialism begins with a lie about human nature — that people exist for the collective and that the collective knows better than the individual.
This lie is contrary to the truths on which America was founded — that rights come not from government’s authority, but from God’s. Once government replaces that authority, compassion becomes control, and freedom becomes permission.
What young America deserves
Young Americans have many reasons to be frustrated. They were told to study, work hard, and follow the rules — and many did, only to find the goalposts moved again and again. But tearing down the entire house does not make it fairer; it only leaves everyone standing in the rubble.
Capitalism is not a perfect system. It is flawed because people are flawed, but it remains the only system that rewards creativity and effort rather than punishing them. The answer is not revolution but renewal — moral, cultural, and spiritual.
It means restoring honesty to markets, integrity to government, and faith to the heart of our nation. A people who forsake God will always turn to government for salvation, and that road always ends in dependency and decay.
Freedom demands something of us. It requires faith, discipline, and courage. It expects citizens to govern themselves before others govern them. That is the truth this generation deserves to hear again — that liberty is not a gift from the state but a calling from God.
Socialism always begins with promises and ends with permission. It tells you what to drive, what to say, what to believe, all in the name of fairness. But real fairness is not everyone sharing the same chains — it is everyone having the same chance.
The American dream was never about guarantees. It was about the right to try, to fail, and try again. That freedom built the most prosperous nation in history, and it can do so again if we remember that liberty is not a handout but a duty.
Socialism does not offer salvation. It requires subservience.
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Princeton Announces New Class on ‘Gender, Reproduction, and Genocide’ in Gaza, Taught by Israel-Hating ‘Feminist’ Who Denies Hamas Killed Babies, Raped Women on Oct 7
Princeton University is launching a new anthropology course on “Gender, Reproduction, and Genocide” in Gaza, a class whose description puts the Israel-Hamas war on par with the Holocaust. The for-credit, graded course is being taught by a “noted Palestinian feminist” who has made provably false claims that Hamas did not kill babies or rape women on Oct. 7, and also called for an end to the Jewish state.
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Judicial Watch Sues Evanston, IL, Mayor for Records on Interference with Federal Immigration Enforcement
(Washington, DC) – Judicial Watch announced today that it filed an Illinois Freedom of Information Act (FOIA) lawsuit against Evanston, IL, Mayor Daniel Biss for records related to obstruction of federal immigration enforcement (Judicial Watch Inc. v. Office of the Mayor (No. 2025CH11002)). Judicial Watch sued in the Circuit Court of Cook County, Illinois, County […]
The post Judicial Watch Sues Evanston, IL, Mayor for Records on Interference with Federal Immigration Enforcement appeared first on Judicial Watch.
Mamdani Is NOT a New Phenomenon: He’s the Center of the Democrat Party
Why are people surprised? Zohran Mamdani is an inevitability. He’s the Democrats’ covert ideology being made overt and incarnate. He…
