Discussion

• @rmconservative Daniel Horowitz on x

  So Altman wants a government bailout because he's made many promises he can't keep, and many deals he can't fulfill from existing revenue or any reasonably projected revenue. No Republican should support this or even remotely consider it. But the AI lobby has already bought

• @rondesantis Ron DeSantis on x

  The rush to secure an unprecedented number of policy favors — from regulatory moratoriums to abrogation of intellectual property rights — was always about using Too Big to Fail as the industry's risk mitigation strategy. Now it's out in the open. If there is one thing that

• @gerritd Gerrit De Vynck on x

  this is a walk back. Friar brought up the word backstop first. I didn't take it as she was asking the govt to only backstop OpenAI loans, but loans for AI infra in general. it's a logical thing to want if you really think AI is geopolitically existential for the U.S. But it's

• @finnmurphy12 Finn Murphy on x

  For all the tech people complaining about Mamdami I would like to point out that a Federal Backstop for unfettered risk capital deployment into data centres for the benefit of OpenAI shareholders is actually a much worse form of socialism than free buses.

• @deanwball Dean W. Ball on x

  friar is describing a worse form of regulatory capture than anything we have seen proposed in any US legislation (state or federal) I am aware of. a firm lobbying for this outcome is literally, rather than impressionistically, lobbying for regulatory capture.

• @conorsen Conor Sen on x

  The epic political backlash coming on the other side of this cycle is so obvious for anyone over the age of 40.

• @tszzl Roon on x

  i don't think the usg should backstop datacenter loans or funnel money to nvidia's 90% gross margin business. instead they should make it really easy to produce energy with subsidies and better rules, infrastructure that's beneficial for all and puts us at parity with china

• @mikeisaac Rat King on x

  sarah friar, openai cfo, says they're “not getting ready for an ipo *right now*” — so mute expectations, wall street... mostly in continued growth mode (aka she says we're “investing” in diff biz's and “not overly focused on a break even moment today” terrible photo as proof [ima…

• @dgt10011 Jeff Park on x

  “OpenAI is a nonprofit that now wants a federal backstop guarantee for all new capex investments but also wants to IPO at $1Tn next year for its exclusive shareholders” And you wonder why Mamdani was elected in a landslide

• @rondesantis Ron DeSantis on x

  No. Privatized profits and socialized losses. The enduring quest of being Too Big to Fail.

• @iamgingertrash @iamgingertrash on x

  And there it is The final piece For Sam to intertwine himself With the fate of the US economy Good luck, Americans [image]

• @ericnewcomer Eric Newcomer on x

  federal guarantees on loans seems crazy, no?

• @dr_gingerballs @dr_gingerballs on x

  They are already asking for government handouts. Eat shit, Sam.

• @kennethdredd Kenneth Dredd on x

  Bro speed ran from being a “non-profit"to “for-profit” to “government guaranteed institution” in a fucking week

• @deredleritt3r Prinz on x

  Sarah Friar (OpenAI CFO) hints that there will be a U.S. government “backstop” or “guarantee” for AI financing. Also, Sam Altman said in an interview with Tyler Cowen published today that he expects the government to become the “insurer of last resort” for AI financing, but [imag…

• @benbajarin Ben Bajarin on x

  People using this to say the bubble is popping.  We don't have enough compute for less than 20% gen pop weekly usage.  We need magnitudes more compute for inference at scale for billions of people.  Enterprises: less than 20% of orgs have any kind of broad deployment of AI in the…

• @julianmi2 Julian Brigden on x

  I smell a rat. Why does #SamAltman #openapi need the taxpayer to guarantee their debt if they are going to make hundreds and hundreds of billions of dollars? Has he just done a cash analysis and realised he's cash flow short? [image]

• @simonsarris Simon Sarris on x

  in this calculus is an unstated belief that models are not a commodity and That's Weird because it feels like its been true for some time and their other actions ("we're making a browser and a social app and a video app") imply they believe that too at least somewhat

• @ikrietzberg Ian Krietzberg on x

  “Federal guarantees on loans”

• @luke_metro @luke_metro on x

  Only 5 months from “the tech right was a failure” to “federally backed GPU loans”

• @dampedspring Andy Constan on x

  Assuming 10 year debt and 150bp of lower financing a 1tn bond guarantee would be worth 12% of proceeds. Or 120BN On a 1TN equity market valuation that would be a 12% stake in the company. As a tax payer I would be happy to guarantee OpenAI debt of 1TN for a free stake of 12% [ima…

• @buccocapital @buccocapital on x

  OpenAI begging for government handouts. I don't own enough Google

• @edzitron Ed Zitron on x

  To be clear, the $11.5bn of losses was actually $12bn, and was disclosed *by Microsoft in a public filing*. Why is the CFO of OpenAI stating that Microsoft is overstating OpenAI's losses? https://www.wsj.com/...

• @realjimchanos James Chanos on x

  So the cash-incinerating company at the epicenter of the AI Ecosystem, whose CEO is already taunting non-existent short-sellers, wants Federal taxpayer guarantees on its debt issuance...?! AYFKM...???!!! [image]

• @kakashiii111 @kakashiii111 on x

  Two weeks ago, it was reported that NVIDIA discussed providing a loan guarantee for OpenAI. Is Jensen trying to transfer the risk to the government now? Is this in addition? And how is it connected to his “China will win the AI race” speech? [image]

• @ikrietzberg Ian Krietzberg on x

  Wouldn't be shocked if it happened. A lot of the movements of the tech industry lately have been described to me as a 'there's no better time to do this,' bc of the current admin. Would be a crazy step, again, wouldn't be shocked if it went through

• @_danielsinclair Daniel Sinclair on x

  The most interesting financial engineering happening today, that's for sure. I could think of a lot worse things that tax payers could backstop than in-demand compute.

• @iamdcinvestor @iamdcinvestor on x

  OpenAI now wants a federal funding backstop for their data center buildout and Jensen talking much more openly about how we will lose to China if we don't rapidly build out our energy capacity it's becoming very obvious that what appears like broken capitalism circular

• @garymarcus Gary Marcus on x

  Call your Congress people.  Ten months almost to the day, OpenAI and NVidia have both rolled out *exactly* the “too big to fail .. but China” game plan I predicted they would be forced to.  Our government is welching on food stamps but they are going to bail out the biggest publi…

• @aoverk @aoverk on x

  It's over. Once a company starts saying they need subsidies or loans from the government, they're done.

• @dkthomp Derek Thompson on x

  Yesterday newsletter: We can't yet say AI is retracing the history of the transcontinental railroad bc we don't yet have federal grants and loan guarantees propping up the build-out Today: OpenAI CFO explicitly requests federal loan guarantees and Jensen Huang tries to spark a Sp…

• @ositanwanevu Osita Nwanevu on x

  ‘Everybody should simply decide to give me more money’ is also my financial plan.

• @dowdedward Edward Dowd on x

  I see a pattern...Altman and Jenson smell the end of bubble (financing drying up) and are going to ask Daddy for taxpayer money citing national security issues. [image]

• @edzitron Ed Zitron on x

  @EricNewcomer I think what's crazier is the cfo of OpenAI saying that financial statements made in the earnings of god damn Microsoft are overestimates! https://x.com/...

• @mattyglesias Matthew Yglesias on x

  Come on [image]

• @thezvi Zvi Mowshowitz on x

  I'm just in awe at the sheer audacity of this.

• @gerritd Gerrit De Vynck on x

  My summary of OpenAI CFO Sarah Friar's vision for the company she laid out today at WSJ tech conference [image]

• @gerritd Gerrit De Vynck on x

  OpenAI CFO Sarah Friar at @WSJ conference says they want a “federal backstop” to make it cheaper to finance massive investments in AI chips for data centers

• @bjornjeffery Björn Jeffery on x

  The “too big to fail” strategy

• @stealthqe4 @stealthqe4 on x

  If we give this guy a dime I'm done paying taxes.

• @shiringhaffary Shirin Ghaffary on x

  At WSJ live conference in rainy Napa, OpenAI CFO Sarah Friar pushes back on AI bubble worries against backdrop of market anxieties this AM “I don't think there's enough exuberance about AI” [image]

• @liebermanaustin Austin Lieberman on x

  Google can do everything on its own that OpenAI is begging the government to help fund.

• @grady_booch Grady Booch on x

  OpenAI is a ravenous, rapacious, and reckless organization.

• @scaling01 @scaling01 on x

  > openai > non-profit > for the benefit of all of humanity > begs government to secure their debt > government will bail out OpenAI if they default > aka taxpayers will absorb losses which could amount to more than 1 trillion dollars > privatize the profits, socialize the losses …

• @kylebrussell Kyle Russell on x

  Whether it seems crazy or not is a filter for whether a person is AGI/Bitter Lesson-pilled

• @ruima Rui Ma on x

  This is honestly ingenious though

• @jason @jason on x

  If OpenAI were to fail it would have zero impact on the future of AI ZERO! They have a dozen viable competitors and ten folks who would buy the assets Let it rise or fall based on merit... [image]

• @ellliotttb @ellliotttb on x

  If OpenAI blows up and investors are saved by the government I would vote for Fidel Castro

• @gerritd Gerrit De Vynck on x

  @WSJ @sama Friar says reports that the co is losing $11.5B a quarter is a “way overestimation”

• @donmiami3 Don Johnson on x

  Dammit. Predicted this shit. Too big to fail pulled a fast one on us all again. Whole economy is just a hot air balloon.

• @zerohedge @zerohedge on x

  OpenAI CFO Sarah Friar said market overly focused on anxiety about a possible bubble in AI sector and should muster more “exuberance”: BBG So first the megalomaniac sociopath lunatic goes apeshit against shorts, now his henchwoman says longs aren't long enough [image]

• @shiringhaffary Shirin Ghaffary on x

  More on OpenAI CFO Sarah Friar's rejection of bubble anxieties: “I kind of reject the premise completely” around circular financing, said Friar. https://www.bloomberg.com/...

• @kalshi @kalshi on x

  JUST IN: 93% chance OpenAI announces an IPO by summer 2026

• @wowbaggert @wowbaggert on bluesky

  lol they all know their actual finances are WeWork levels of fucked

• @mjamurphy Mike Murphy on bluesky

  The interviewer understandably tries to get her to confirm discussions with the government, but unfortunately does not ask the simpler question of why OpenAI requires a “backstop” for chip financing.

• @edzitron.com Ed Zitron on bluesky

  They're calling it “the most well-taken comment in history” [embedded post]

• @carlquintanilla Carl Quintanilla on bluesky

  We're in the “OpenAI-CFO-thinks-the-government- should-backstop-AI-financing” part of the cycle.  🤡  —  @bloomberg.com  —  www.bloomberg.com/news/article...  [image]

• @edzitron.com Ed Zitron on bluesky

  Absolute diva moment!  Ooooh I'm so messy I can't afford to build the data centers I want 🥺🥺🥺🥺🥺 earn more revenue!  Wipe your own ass!  —  Also this really suggests that there's not much interest in giving OpenAI the debt it would need [embedded post]

• @shiraovide Shira Ovide on bluesky

  The Marshall Plan, but for Sam Altman to buy more GPUs. www.wsj.com/tech/ai/open...  [image]

• r/Economics r on reddit

  OpenAI Wants Federal Backstop for New Investments

• r/OpenAI r on reddit

  OpenAI Wants Federal Backstop for New Investments

• r/StockMarket r on reddit

  OpenAI Isn't Yet Working Toward an IPO, CFO Says

• @davidsacks David Sacks on x

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

• @openainewsroom @openainewsroom on x

  [image]

• r/technology r on reddit

  OpenAI Wants Federal Backstop for New Investments

• @sharongoldman Sharon Goldman on x

  After a months-long sabbatical and board exit, Brockman has reemerged as OpenAI's operational power center — turning AGI ambition into hardware, capital, and political leverage.

• @fortunemagazine @fortunemagazine on x

  Greg Brockman is leading OpenAI's aggressive infrastructure buildout, a project to which it has already committed roughly $1.4 trillion to deploying the equivalent of 30 gigawatts of compute capacity. https://fortune.com/... [image]

• @sharongoldman Sharon Goldman on x

  NEW: Meet @OpenAI's master builder. Greg Brockman is steering a $1.4 trillion infrastructure surge — the most ambitious compute buildout in tech history — with stakes that go far beyond AI. My latest @Fortune deep dive 👇 https://fortune.com/...

• r/artificial r on reddit

  OpenAI's master builder: Greg Brockman is steering a $1.4 trillion infrastructure surge with stakes that go far beyond AI