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Trump tech czar slams OpenAI scheme for federal 'backstop' on spending — forcing Sam Altman to backtrack
OpenAI is under the spotlight after seemingly asking for the federal government to provide guarantees and loans for its investments.
Now, as the company is walking back its statements, a recent OpenAI letter has resurfaced that may prove it is talking in circles.
'We're always being brought in by the White House ...'
The artificial intelligence company is predominantly known for its free and paid versions of ChatGPT. Microsoft is its key investor, with over $13 billion sunk into the company, holding a 27% stake.
The recent controversy stems from an interview OpenAI chief financial officer Sarah Friar gave to the Wall Street Journal. Friar said in the interview, published Wednesday, that OpenAI had goals of buying up the latest computer chips before its competition could, which would require sizeable investment.
"This is where we're looking for an ecosystem of banks, private equity, maybe even governmental ... the way governments can come to bear," Friar said, per Tom's Hardware.
Reporter Sarah Krouse asked for clarification on the topic, which is when Friar expressed interest in federal guarantees.
"First of all, the backstop, the guarantee that allows the financing to happen, that can really drop the cost of the financing but also increase the loan to value, so the amount of debt you can take on top of an equity portion for —" Friar continued, before Krouse interrupted, seeking clarification.
"[A] federal backstop for chip investment?"
"Exactly," Friar said.
Krouse further bored in on the point when she asked if Friar has been speaking to the White House about how to "formalize" the "backstop."
"We're always being brought in by the White House, to give our point of view as an expert on what's happening in the sector," Friar replied.
After these remarks were publicized, OpenAI immediately backtracked.
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On Wednesday night, Friar posted on LinkedIn that "OpenAI is not seeking a government backstop" for its investments.
"I used the word 'backstop' and it muddied the point," she continued. She went on to claim that the full clip showcased her point that "American strength in technology will come from building real industrial capacity which requires the private sector and government playing their part."
On Thursday morning, David Sacks, President Trump's special adviser on crypto and AI, stepped in to crush any of OpenAI's hopes of government guarantees, even if they were only alleged.
"There will be no federal bailout for AI," Sacks wrote on X. "The U.S. has at least 5 major frontier model companies. If one fails, others will take its place."
Sacks added that the White House does want to make power generation easier for AI companies, but without increasing residential electricity rates.
"Finally, to give benefit of the doubt, I don't think anyone was actually asking for a bailout. (That would be ridiculous.) But company executives can clarify their own comments," he concluded.
The saga was far from over, though, as OpenAI CEO Sam Altman seemingly dug the hole even deeper.
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By Thursday afternoon, Altman had released a lengthy statement starting with his rejection of the idea of government guarantees.
"We do not have or want government guarantees for OpenAI datacenters. 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. If one company fails, other companies will do good work," he wrote on X.
He went on to explain that it was an "unequivocal no" that the company should be bailed out. "If we screw up and can't fix it, we should fail."
It wasn't long before the online community started claiming that OpenAI was indeed asking for government help as recently as a week prior.
As originally noted by the X account hilariously titled "@IamGingerTrash," OpenAI has a letter posted on its own website that seems to directly ask for government guarantees. However, as Sacks noted, it does seem to relate to powering servers and providing electrical capacity.
Dated October 27, 2025, the letter was directed to the U.S. Office of Science and Technology Policy from OpenAI Chief Global Affairs Officer Christopher Lehane. It asked the OSTP to "double down" and work with Congress to "further extend eligibility to the semiconductor manufacturing supply chain; grid components like transformers and specialized steel for their production; AI server production; and AI data centers."
The letter then said, "To provide manufacturers with the certainty and capital they need to scale production quickly, the federal government should also deploy grants, cost-sharing agreements, loans, or loan guarantees to expand industrial base capacity and resilience."
Altman has yet to address the letter.
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JD Vance offers calm election reflection, warns against 'idiotic' overreaction to Dem winning streak
Vice President JD Vance is cutting through the noise and reminding Republicans not to overreact to the Democrats' latest winning streak in local and state elections.
To onlookers, it might seem like Democrats have regained their footing. New York City elected its first openly socialist mayor, California is poised to redistrict the state in a manner that gives Democrats an even greater electoral advantage, and fantasizing about murdering political opponents no longer disqualifies a person from holding the highest law enforcement office in Virginia. In short, Democrats won every election they were hoping to win on November 4.
'The infighting is so stupid.'
In the wake of these electoral losses, Vance gave Republican voters a reality check.
"I think it's idiotic to overreact to a couple of elections in blue states, but a few thoughts," Vance said in a Wednesday post on X.
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Vance noted that one of Republicans' challenges is voter enthusiasm. Voter turnout has historically been difficult for local elections, even more so among Republicans. Because of this, Vance emphasized the importance of energizing the base and engaging voters in future elections.
"[Scott] Pressler, TPUSA, and a bunch of others have been working hard to register voters," Vance said. "I said it in 2022, and I've said it repeatedly since: our coalition is 'low propensity' and that means we have to do better at turning out voters than we have in the past."
Affordability was at the forefront of all successful campaigns this cycle. As Vance noted, cost of living will be a defining issue for all future elections, and it's one Republicans need to stay focused on both on the campaign trail and in office.
"We need to focus on the home front," Vance said. "The president has done a lot that has already paid off in lower interest rates and lower inflation, but we inherited a disaster from Joe Biden and Rome wasn't built in a day."
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"We're going to keep on working to make a decent life affordable in this country, and that's the metric by which we'll ultimately be judged in 2026 and beyond."
Above all, Vance encouraged the MAGA movement to tune out distracting "infighting" and focus on the movement.
"The infighting is so stupid," Vance said. "I care about my fellow citizens — particularly young Americans — being able to afford a decent life, I care about immigration and sovereignty, and I care about establishing peace overseas so our resources can be focused at home."
"If you care about those things too, let's work together."
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Trump uses tariff revenue to protect poor mothers and kids hurt by Democrats' shutdown
Using the revenue of some of the tariffs that liberal critics have fought vigorously, President Donald Trump has helped vulnerable American mothers and, in the process, neutralized some of Democrats' supposed "leverage" in what is nearly the longest government shutdown in U.S. history.
House Minority Whip Katherine Clark (D-Mass.) recently admitted that while the Democrat-induced government shutdown has been painful for families across the country, it is somehow necessary because "it is one of the few leverage times [Democrats] have."
In their quest for leverage, Democrats have jeopardized critical food assistance and health care for the nearly seven million poor American pregnant mothers, breastfeeding mothers, infants, and at-risk children who rely on the special Supplemental Nutrition Program for Women, Infants, and Children program known as WIC.
'American families deserve certainty from their government.'
The WIC program, which received roughly $7 billion in fiscal year 2024, is federally funded through the annual appropriations process. The National WIC Association warned last month that unless additional funding was injected into the program, millions of families would lose their benefits as of Nov. 1.
"NWA is calling on the White House to make additional emergency funds available to avoid a short-term crisis for the millions of American families who count on WIC while Congress negotiates full-year funding for FY 2026," Georgia Machell, president of the NWA, said in an Oct. 21 statement.
"WIC is a lifeline for nearly 7 million pregnant and postpartum women, infants, and young children. Even short-term disruption to WIC’s healthy food benefits, lactation support, nutrition education, screenings, and referrals can have long-term negative impacts on families," added Machell.
On Friday, the Trump administration tapped a fund of unused Section 232 tariff revenue in order to make $450 million available for the WIC program, reported Reuters.
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Federal funding records reportedly show that the money was transferred to the WIC program on Friday from the tariff revenue fund, which was made available to the U.S. Department of Agriculture for commodity disaster assistance. The USDA drew $300 million from the same fund last month to keep the WIC program liquid.
White House press secretary Karoline Leavitt stated last month, "The Trump White House will not allow impoverished mothers and their babies to go hungry because of the Democrats' political games."
Machell noted in the wake of the White House's rescue of the program that "this additional funding is a welcome relief, but it is a stopgap, not a solution," stressing the need for an end to the shutdown.
"American families deserve certainty from their government, not the constant anxiety of short-term fixes, especially when their children's health is at stake," said Machell.
While the administration swooped in to bolster the WIC program, it did not similarly drain its pool of tariff revenues to fully fund Supplemental Nutrition Assistance Program benefits, having indicated that it lacks the authority to use emergency funds for SNAP.
Not only did the transfer temporarily deprive Democrats of the ability to use American pain as political leverage, it served as yet another point in favor of Trump's tariffs.
House Democrats prophesied in April that Trump's tariff policy would lead to economic collapse. Even though such calamity has yet to manifest, Senate Democrats passed resolutions last week to eliminate some of the president's global and country-specific tariffs, namely those imposed under the International Emergency Economic Powers Act.
According to an Oct. 31 report from the Tax Foundation, a nonpartisan think tank focused on tax policy, "Trump's imposed tariffs will raise $2.4 trillion in revenue over the next decade on a conventional basis" and had raised $174 billion in revenue between January and September of this year.
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Trump admin agrees to partially fund food stamps as Democrat shutdown approaches record
President Donald Trump's administration will partially foot the bill for the food assistance program SNAP as the government shutdown rages on.
Key government programs like SNAP officially lapsed over the weekend after Democrats voted over a dozen times throughout October against reopening the government. As the shutdown inches toward a record-breaking length, the Trump administration has agreed to partially fund SNAP benefits.
'There’s a new sheriff in town.'
Two federal judges ruled on Friday that the Trump administration needs to spend a $5.25 billion emergency fund before officially cutting off SNAP. This will only cover about half of the $9 billion spent per month on SNAP benefits.
The judges also said the Department of Agriculture could move around its funds to supplement SNAP for the month of November, but the Trump administration will likely refrain, calling it an “unacceptable risk.”
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“Section 32 Child Nutrition Program funds are not a contingency fund for SNAP,” Patrick Penn, who oversees the SNAP program at the USDA, wrote Monday.
“Using billions of dollars from Child Nutrition for SNAP would leave an unprecedented gap in Child Nutrition funding that Congress has never had to fill with annual appropriations, and USDA cannot predict what Congress will do under these circumstances,” Penn added.
Department of Agriculture Secretary Brooke Rollins is also seizing the opportunity to comb through SNAP recipients to ensure that only Americans and not illegal aliens are receiving the taxpayer-funded benefits.
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"On my first day [at USDA,] we told every state to send us their SNAP data so we could make sure illegal immigrants aren’t getting benefits meant for American families," Rollins said. "29 states stepped up. 21 blue states refused — and two SUED US FOR ASKING! And guess what? In just the states that cooperated, we’ve already uncovered massive fraud."
"The Democrat Party has turned its back on working Americans and built its entire strategy around protecting illegal aliens," Rollins added. "They know if the handouts stop, those illegals will go back home, and Democrats will lose 20+ seats after the next census. There’s a new sheriff in town. [President Trump] will not tolerate waste, fraud, or abuse while hardworking Americans go hungry."
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Gavin Newsom slams lying politicians — then defends Biden's mental acuity in stunning flip
California Gov. Gavin Newsom's (D) irony detector may have been running low during a recent interview when he attacked lying politicians, then defended former President Joe Biden's mental fitness.
Newsom told NBC's Kristen Welker about his disdain for dishonest politicians. In the next breath, Newsom insisted that Biden was perfectly fit to run for a second term despite the obvious decline that Democrats tried to cover up.
'There was no interaction I had that suggested otherwise.'
"There is nothing I dislike more than the politician that sits there and lies to you," Newsom said. "We all just sit rolling our eyes, going, 'Give me a break.'"
Welker followed up, asking whether Newsom felt Biden was fit to serve in office through January 2029, to which he said his priority was preventing Trump from serving a second term.
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"My focus was frankly situational," Newsom said. "It was making sure Donald Trump didn't get back into office to experience everything that we're experiencing today."
"There was no interaction I had that suggested otherwise," Newsom added.
Welker pushed back on Newsom, asking him if he regrets not "sounding the alarm" on Biden's health earlier to pave a path for a stronger candidate going into November 2024.
"I'm not going to substitute myself for someone else or for popular opinion," Newsom replied. "I'm going to express my relationship to my truth with the former president of the United States, including at the end of his term, quite literally in December."
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"There was nothing to suggest what you just said, or others have suggested, in terms of my interaction," Newsom added. "That's all I can be accountable for."
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