At the Wall Street Journal’s Tech Live event, OpenAI’s CFO, Sarah Friar, proposed that the US government should provide backing to facilitate financing for the AI sector. This comes in contrast to David Sacks, Chair of the President’s Council of Advisors on Science and Technology, who declared that no federal bailout for AI would occur if a company fails. Currently, private credit funding from the shadow banking sector is surging, reaching $50 billion quarterly. OpenAI is investing over $1.4 trillion in AI infrastructure while CEO Sam Altman aims for 250 gigawatts of computing capacity by 2033, at a projected cost of $10 trillion. Despite these ambitious plans, the company remains unprofitable with $13 billion in revenue. Market analysts express concerns over AI market instability and recent sell-offs, with notable declines in Nvidia, AMD, Palantir, and Oracle stocks. The competitive landscape highlights fears that China may dominate the AI field.
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