OpenAI Asked for Government Aid Guarantee: Warren Writes Letter to Altman

Warren Warns OpenAI: 'Profits Privatized, Losses Socialized'

US Senator Elizabeth Warren has sent an official letter to OpenAI CEO Sam Altman, demanding assurances that the AI giant will not seek a potential government bailout despite its massive spending and lack of profitability to date. In her letter, Warren expressed concern that the company appears poised to follow a classic strategy of 'privatizing profits and socializing losses.'

Trillion-Dollar Spending and Economic Risk Concerns

Senator Warren noted that despite not yet being profitable, OpenAI has made spending commitments exceeding one trillion dollars and appears to be positioning itself to seek government assistance if it cannot pay its bills. Warren, a senior member of the Senate Banking Committee, argued that the company's 'increasingly complex web of speculative, debt-fueled industry partnerships and circular spending arrangements' poses a risk to the entire US economy. It was noted that this situation could mean the government may have little choice but to intervene if the AI industry faces distress.

Warren pointed to cloud computing company CoreWeave as an example. Unlike CoreWeave, which is under heavy debt to fulfill its contract with OpenAI, OpenAI itself is said to have relatively less debt on its own balance sheet. Such complex financial relationships have revived debates that tech giants' AI investments could create broader systemic risk.

Statements from OpenAI and the Trump Administration

OpenAI has repeatedly denied claims that it is seeking or wants a government guarantee. The company has been in a persistent communications crisis on the issue since last November when its CFO Sarah Friar implied that taxpayers should 'support' the company's heavy infrastructure investments. While Friar quickly walked back her comments, Altman also emphasized that OpenAI does not 'have or want a government guarantee' for its data centers.

However, Warren commented that these statements 'were not seen to rule out federal loans and guarantees for the entire AI industry.' According to Warren, even without a targeted bailout, given the mismatch between OpenAI's spending and revenues, it would significantly benefit from such industry-wide support.

The Trump administration has also rejected the idea of a government bailout because AI companies are pouring billions into projects like Stargate, whose path to profitability is unclear. Shortly after Friar's comments, White House AI and Crypto Czar David Sacks posted that '[t]here will be no federal AI bailout.' These developments are seen as a reflection of global debates on the economic impacts of AI.

Political Donations and Transparency Demands

Meanwhile, tech companies are working to improve their relations with President Trump and the federal government. It is known that firms like Amazon, Apple, Google, and Meta have donated to Trump's projects, and executives like Mark Zuckerberg, Altman, and Tim Cook have made visits to Washington or Mar-a-Lago to show allegiance. It was revealed that OpenAI co-founder and president Greg Brockman and his wife Anna are among Trump's 'mega-donors.' Warren and some other lawmakers had suggested these contributions could be considered bribes.

In a letter to Sacks last November, Warren asked the administration to confirm it would not use taxpayer money to 'prop up' major AI companies but stated she had not yet received a response. In her new letter to Altman, she demands confirmation of the details of any discussions OpenAI has had with the US government regarding credit guarantees and what kind of federal support the company favors for the industry.

Detailed Financial Information Requested

Senator Warren also requested details on the specific infrastructure projects for which OpenAI is seeking tax breaks and information on its projected annual financial status through 2032. In particular, she asked what would happen if AI models reach a plateau and demand for AI tools fails to meet expectations. Information was also requested on whether the company currently makes a profit from any ChatGPT plan or expects to do so within the next three years. Warren gave Altman until February 13, 2026, to respond.

This development shows that tech companies are under increasing scrutiny and pressure for transparency regarding their financial relationships with the government, in addition to issues like data usage and ethical auditing of AI systems.