Senator Elizabeth Warren (D-MA) is pressing the Trump administration for more information about possible plans to “promote” major AI companies with taxpayer money. In a letter to White House Special Adviser for AI and Crypto David Sachs and Director of the Office of Science and Technology Policy Michael Kratsios, Senator Warren wrote that President Donald Trump’s “close relationship” with AI executives and donors raises concerns that the administration will bail out AI executives and shareholders, while taxpayers will be left to foot the bill.
Warren, who is a ranking member of the Senate Committee on Banking, Housing and Urban Affairs, points to a recent interview with OpenAI CFO Sarah Fryer, who suggested the government could “backstop” the company’s investments in AI, before retracting the statement. However, Warren noted that OpenAI wrote a letter to Kratios in October requesting that the Trump administration expand the government-funded Advanced Manufacturing Investment Credit (AMIC) to support AI server production and data centers — which should go toward semiconductor manufacturers.
“OpenAI’s actions suggest that it may be pursuing a deliberate strategy to entangle itself with the federal government and the broader economy.”
Earlier this month, Sachs echoed concerns that the government would support AI startups, saying, “There will be no federal bailout for AI.”
However, Warren expresses skepticism. “While Mr. Altman has claimed that the company is not looking to ‘bail out,’ OpenAI’s actions show that it is pursuing a deliberate strategy to entangle itself with the federal government and the broader economy, so the government has no choice but to step in with public money,” Warren writes. “We’ve seen it before: Borrow enough, make enough risky bets, and when those bets fail demand a taxpayer bailout so the economy doesn’t collapse.”
Senator Warren is asking Sachs and Kratsios if the Trump administration has any plans or proposals to provide a backstop for OpenAI and other firms. She is also seeking information about what type of government support the administration plans to give to OpenAI and other companies, as well as whether they think AMIC should apply to AI buildouts. Sachs and Kratsios have until December 1, 2025 to respond.