Federal loan guarantees, aka the equivalent of a Fannie Mae/Freddie Mac style backstop that fuelled the reckless lending and opaque securitization of mortgages that led to the 2008 crisis.

It's an admission that they think it's quite likely they go bust. Of course they'll try to put the taxpayer on the hook, without giving much upside back if they succeed.

If the government wanted to pump USD$1T into the economy, is investment into a stack of sheds full of rapidly depreciating computers the most effective use of USD$1T?

Some example contrasting options:

- Worldwide investment in 300mm wafer fab equipment is projected to be USD$107-138B per year through to 2028.[1] USD$1T buys 100% of the global production of 300mm wafer fab equipment for about 7 years.

- European Union countries are projected to spend approximately USD$250B on electricity generation and transmission infrastructure projects in 2025.[2] The US is projected to spend a similar amount.[3] China is projected to spend approximately USD$460B.[4] USD$1T buys 4 years worth of European Union or US expenditure on electricity generation and transmission infrastructure, or 2 years worth of Chinese expenditure.

- Worldwide biopharmaceutical R&D was estimated to amount to USD$276B in 2021.[5] More conservative estimates include USD$102 in 2024.[6] Using the larger estimate, USD$1T buys 3.5 years of global biopharmaceutical R&D.

[1] https://www.trendforce.com/news/2025/10/14/news-2nm-race-dri...

[2] https://www.iea.org/reports/world-energy-investment-2025/eur...

[3] https://www.iea.org/reports/world-energy-investment-2025/uni...

[4] https://www.iea.org/reports/world-energy-investment-2025/chi...

[5] doi:10.1038/d41573-024-00131-2 (https://www.analysisgroup.com/globalassets/insights/publishi...)

[6] https://www.iqvia.com/blogs/2025/06/global-trends-in-r-and-d...

I don't get why they are trying so hard to keep this from the front page, they're doing everything they can to nerf it. It's all over the internet at this point.

Edit: Streisand effect this clownery, show them how the internet works.

I really need to read up on how a non profit took donations and converted them into a company owned by individuals, then IPO.

does anyone have the slightest idea on how much open AI is currently earning in terms of revenue per quarter vs how much money they are actually burning per quarter? What is their userbase? 1 billion? What is the upside basically is my question

Privatize profits socialize risks. This is not capitalism, this is just old-fashion feudalism with a new technological aristocracy on top.

Don't get it. Especially when I see competing model providers. What makes OpenAI special?

As a private person you can't even buy any upside into it directly. Without equity why would the US govt ever take a deal like this?

If the excuse is to compete w china, I say just let china win.

> Friar dismissed speculation that OpenAI might soon go public, saying an IPO “is not on the cards right now.”

I thought the whole point of going public was to tap the broader market for liquidity? Maybe they should SPAC lol.

In an era where the working poor are struggling to buy groceries and pay rent, these clowns want government money to make a better chat bot.

What a complete circus.

It would be utterly nonsensical for the US to take this deal. The easy alternative would be to subsidize GPU datacenter buildouts on favorable terms with nvidia/accelerator providers. OpenAI/Anthropic amd everyone else could then competitively bid on access.

I guarantee you that openai would leverage this deal to the gills and come back for more.

I've been using the gpt-oss 20b parameter model on my laptop and it works great. Doesn't reject giving legal or medical advice either. Obviously not good enough for coding, but seems like 'useful AI assistant for daily life' is in overshoot.

You think that Trump won't demand something in return for this?

I keep telling everyone I know that AI will be enshitified just like every other internet business. Tell me why the incentives will be different this time around. Putting yourself in hock to an aspiring authoritarian is certainly one way to supercharge that process.

Is this all part of the sequel to the horse ebooks / bear stearns bravo ARG?

It's interesting because if Trump falls for this, at it fuels an even bigger bubble than is already going and Fed can't lower interest rates, then it will destroy his part in the midterms. If he can't bring down costs and interest rates people are going to freak out, that's clear from the polls. Where most people in the country are at in the moment is a precarious one step away from ruin while watching prices going and interest rates stay. That's not Sam's reality but most people are struggling and if Sam hordes all the resources to him, people are going to revolt.

The Open in Open AI maybe the most inaccurate advertising ever. I am sensing they realised there is no way of making the cash they need to keep going, just by providing what they currently provide, and I am not remotely upset by that. Sam Altman was never the saviour or god that many foolishly thought and thankfully it hasn't taken long to be clear.

Not a financial expert but won't this massively inflate prices wherever open spends it? e.g Energy?

No