Wednesday, November 12, 2025

Sam Altman Denies Federal Guarantees Letter Shows OpenAI Requested

A formal letter sent by OpenAI to the White House in late October sought federal financial support for AI infrastructure, contradicting statements made days later by CEO Sam Altman that the company wants no such government backing, according to documents and reports reviewed this week.

The 11-page document, submitted to the White House Office of Science and Technology Policy on October 27, outlined policy proposals including grants, cost-sharing agreements, loans, and loan guarantees aimed at expanding the capacity of AI data centers and electrical grid infrastructure.

Ten days after submitting the letter, Altman wrote in a lengthy post on X that OpenAI neither has nor wants government guarantees for its data centers. He added that governments should avoid picking winners or losers and that taxpayers should not rescue companies that make poor business decisions.

The apparent contradiction surfaced after OpenAI Chief Financial Officer Sarah Friar told a Wall Street Journal event on November 5 that a federal backstop could reduce financing costs for AI infrastructure. The Trump administration rejected the idea immediately.

White House AI adviser David Sacks wrote that no federal bailout would be provided to AI companies, noting the sector includes at least five major firms that could replace any failing competitor. Friar walked back her remarks on LinkedIn within hours.

AI researcher Gary Marcus, who brought the October letter to public attention, accused Altman of dishonesty. The document remains accessible on OpenAI’s content delivery network.

The letter proposed that government funding could reduce lead times for essential grid equipment from years to months. OpenAI suggested using existing programs, including the Defense Production Act and the Department of Energy’s Loan Programs Office, to provide initial investments.

Altman maintains that the recommendations targeted the wider AI industry rather than his company alone, and that any discussion of loan guarantees related to semiconductor manufacturing instead of the company’s own infrastructure.

Read: OpenAI Power Struggle: Employees Vs. Board Vs. Sam Altman, Explained

Questions about Altman’s public statements are not new. The company’s board removed him temporarily in November 2023, citing concerns that he had not been consistently candid with directors. Former board member Helen Toner later described instances where Altman withheld information from the board.

A deposition from former Chief Scientist Ilya Sutskever, who voted for Altman’s removal, documented similar concerns about his transparency.



Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Gold Isn’t In A Bubble, Currency Is. – Doug Casey

The Real Move Begins When They Cut Rates | Peter Krauth

Is Altamira Gold Sitting On Brazil’s Next Big Gold Discovery?

Recommended

Stifel Initiates Coverage On Goliath Resources With $5.00 Price Target

ESGold Completes Mill Building Construction, Final Equipment Procurement Underway

Related News

Popular AI Chatbot Convinces Man to Commit Suicide Over Climate Change Worries

The widow of a Belgian man whom recently committed suicide is blaming an AI chatbot...

Wednesday, April 5, 2023, 02:18:00 PM

Rogers Employee Says Company Used Workers to Train AI Replacements

A former Rogers Communications (TSX: RCI.B) employee claims the Canadian telecommunications company forced workers to...

Wednesday, July 9, 2025, 04:28:00 PM

GPT 3.5: OpenAI Launches ChatGPT Plus; Microsoft Unveils ChatGPT-Powered Teams Premium

OpenAI on Wednesday announced the launch of ChatGPT Plus, the subscription version of its sensational...

Thursday, February 2, 2023, 05:10:00 PM

SearchGPT: OpenAI’s Bold Move to Challenge Google’s Search Supremacy

OpenAI has unveiled a new initiative in the tech industry’s race to leverage generative artificial...

Friday, July 26, 2024, 02:11:00 PM

OpenAI and Microsoft Face $3 Billion Lawsuit Over Alleged Theft of Personal Data for ChatGPT

OpenAI Inc., the creator of ChatGPT, and its major backer Microsoft (NASDAQ: MSFT), are facing...

Thursday, June 29, 2023, 03:07:00 PM