Does OpenAI expect a Government Bailout?

In recent weeks, there's been a lot of market anxiety about the sustainability of the AI boom. This was partly driven by the outrage around Sarah Frier, Open AI's finance chief, floating the idea that a government backs stop for its $ 1.4 trillion data center buildout might be a good idea. Frier quickly walked back her suggestion in a LinkedIn post later that day, saying that she had meant that the government needed to play their part in combination with the private sector to contribute to America's AI growth and that open AI was not seeking a government back stop for their infrastructure commitments. Her statement, while attempting to calm the outrage, only confused matters even further about how the not yet profitable startup plans to pay for its massive AI data center and chip commitments.

Sam Alman tweeted on the Everything app, "We do not have or want government guarantees for open AI data centers. 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. Then it turned into a Bill Aman tweet at that point where he went on and on for around 20 pages. At first I was thinking who would write a tweet that long and then I realized that he had probably just used chat GPT.

He knew that people would only read the first few lines, but he wanted to seem thoughtful, so had to turn out an entire novel. The core problem for Open AI is that they've signed more than $1.4 trillion in infrastructure commitments over the last few months with the goal of building out the data centers that it says are needed to meet soaring demand, but they are nowhere near having the money required to complete those deals. Frier gave the example of having to hold back Sora 2 for months due to compute constraints. >> I just want to be clear what it means when I say we're computed.

It means that for example we cannot roll out our new models when they are ready. So when Sora 2 was ready to when Sora 2 actually launched there was probably a good six seven month actually gap there. >> Okay. The agreements that they've signed have raised lots of questions around how a cash burning company with tiny ...