In a decisive message to the tech sector, David Sacks, serving as the AI and crypto czar under President Donald Trump, declared on Thursday that there will be “no federal aid for AI” companies. This announcement arrives amidst ongoing discussions concerning the financing strategies of burgeoning AI firms as they expand their infrastructure rapidly.

Sacks pointed out that the U.S. is home to at least five leading frontier AI model companies, and should one encounter difficulties, others are poised to fill the gap. “The U.S. has at least 5 major frontier model companies. If one fails, others will succeed it,” he stated on X, previously known as Twitter.

His remarks came in the wake of OpenAI’s CFO, Sarah Friar, who had previously expressed a desire for a governmental “backstop” to support infrastructure endeavors. Friar later clarified that her comments were misconstrued and emphasized that OpenAI isn’t pursuing federal bailouts. Instead, she aimed to underscore the importance of collaboration between the private sector and the government in fostering the United States' long-term tech resilience.

Sacks also highlighted the Trump administration's initiative to streamline permitting and enhance power generation for AI infrastructure, with the goal of expediting construction without heightening residential electricity expenses. He mentioned, “To be fair, I don’t believe anyone actually requested a bailout. (That would be absurd.)”

Observers in the industry interpret this strategy as a nudge towards self-sufficiency for AI startups, promoting a landscape where private investment and competition are primary drivers of innovation, rather than reliance on government safety nets. The administration’s commitment to simplified infrastructure assistance suggests a supportive environment for AI advancement, albeit with clear limits on public financing.