OpenAI Sought Government Loan Guarantees Days Before Sam Altman’s Denial

OpenAI explicitly requested federal mortgage ensures for AI infrastructure in an October 27 letter to the White Home—which kindly refused the provide, with AI czar David Sacks saying that at the least 5 different corporations may take OpenAI’s place—instantly contradicting CEO Sam Altman’s public statements claiming the corporate would not need authorities assist.

The 11-page letter, submitted to the Workplace of Science and Expertise Coverage, known as for increasing tax credit and deploying “grants, cost-sharing agreements, loans, or mortgage ensures to increase industrial base capability” for AI information facilities and grid parts. The letter detailed how “direct funding may additionally assist shorten lead occasions for crucial grid parts—transformers, HVDC converters, switchgear, and cables—from years to months.”

“Preliminary investments could possibly be made utilizing current authorities such because the Protection Manufacturing Act Title III and the Division of Power’s Mortgage Applications Workplace,” OpenAI stated.

Simply 10 days later, on November 6, Altman posted on X that “we should not have or need authorities ensures for OpenAI information facilities,” including that “taxpayers shouldn’t bail out corporations that make dangerous enterprise selections.”

The contradiction emerged after OpenAI CFO Sarah Friar instructed a Wall Avenue Journal occasion on November 5 {that a} federal “backstop” may assist decrease financing prices and enhance debt capability for AI infrastructure.

Her feedback triggered fierce backlash. For instance, Florida Governor Ron DeSantis tweeted that the federal government shouldn’t bail out tech corporations. Sacks wrote that “there might be no federal bailout for AI.”

Friar shortly walked again her feedback on LinkedIn, saying OpenAI wasn’t looking for a authorities backstop for infrastructure commitments.



“I need to make clear my feedback earlier in the present day. OpenAI is just not looking for a authorities backstop for our infrastructure commitments. I used the phrase ‘backstop’ and it muddied the purpose,” she wrote. “As the total clip of my reply exhibits, I used to be making the purpose that American power in know-how will come from constructing actual industrial capability, which requires the non-public sector and authorities enjoying their half.”

Altman’s prolonged X submit the subsequent day amplified this message. “Our CFO talked about authorities financing yesterday, after which later clarified her level, underscoring that she may have phrased issues extra clearly. As talked about above, we predict that the U.S. authorities ought to have a nationwide technique for its personal AI infrastructure,” his tweet reads.

In fact, this transfer additionally generated backlash.

AI researcher Gary Marcus revealed the October 27 letter, calling Altman’s denial “mendacity his ass off” and noting the letter explicitly requested the very mortgage ensures Altman claimed to not need. The letter stays publicly accessible on OpenAI’s content material supply community.

This is not the primary time Altman’s statements have confronted scrutiny. OpenAI’s board briefly fired him in November 2023 for being “not persistently candid,” based on the board’s assertion. Former board member Helen Toner later detailed on a podcast how Altman had withheld info and made it tough for the board to satisfy its oversight duties. A current deposition from former OpenAI Chief Scientist Ilya Sutskever, who voted to take away Altman, additional documented issues about his candor.

OpenAI didn’t instantly reply to requests for remark concerning the October 27 letter or the obvious contradiction with Altman’s statements.