OpenAI CFO Sarah Friar triggered a wave of criticism this week after suggesting the company wanted the U.S. government to serve as a financial “backstop” for its infrastructure investments. The comment, made during a Wall Street Journal interview, sparked accusations that OpenAI—a central player in the AI industry—was seeking taxpayer-backed bailouts to support risky financing strategies.
Following the backlash, Friar issued a public clarification, stating that her remarks were misinterpreted. She emphasized that OpenAI is not requesting direct financial guarantees but believes the federal government should play a supporting role in America’s broader AI industrial capacity. “I used the word ‘backstop,’ and it muddied the point,” she said in a LinkedIn post.
The controversy comes as growing skepticism surrounds the AI boom. Michael Burry, the investor famous for predicting the 2008 housing crash, disclosed new bets against AI giants Nvidia and Palantir. His firm, Scion Asset Management, purchased put options on both companies, signaling a bearish outlook and reinforcing fears of an AI bubble driven by excessive speculation and hype.
OpenAI, known for its massive infrastructure demands, has faced increasing scrutiny over its aggressive financial posture. Reports say the company has over $1.4 trillion in spending commitments, raising alarms from investors. When questioned about the disconnect between spending and revenue, CEO Sam Altman reportedly responded with frustration, telling one concerned shareholder, “If you want to sell your shares, I’ll find you a buyer. Enough.”
Critics argue the push for government involvement reflects deeper instability within the sector. Rather than proving long-term viability, companies appear more focused on acquiring funding and maintaining market dominance through political influence and massive spending.
The episode illustrates the tension between Silicon Valley’s expansive ambitions and the growing call for fiscal responsibility and market discipline.
