OpenAI, the company behind ChatGPT and a global leader in artificial intelligence, faced backlash this week after a controversial statement from its Chief Financial Officer, Sarah Friar.
During a Wall Street Journal event, Friar suggested that the U.S. government should provide a financial “backstop” to support OpenAI’s massive $1.4 trillion investment in chips and data center infrastructure. She explained that such government backing could lower borrowing costs and allow the company to take on more debt — a comment that many interpreted as asking taxpayers to help shoulder OpenAI’s financial risks.
The remark immediately drew criticism, as people argued it would be unfair for taxpayers to cover potential losses for a private company valued at around $500 billion. In response to the growing outrage, Friar quickly clarified her statement on LinkedIn, saying that she didn’t mean OpenAI was seeking direct government funding or guarantees. Instead, she said she believed the government and private sector should work together to strengthen America’s position in AI development.
Despite her clarification, confusion and criticism persisted, especially since OpenAI is still not profitable. The episode raised fresh questions about how the company plans to fund its ambitious infrastructure projects and reignited debate over whether private tech giants should rely on public support to advance their business goals.
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