ChatGPT creator OpenAI had issued a clarification on Thursday that the company is not seeking US government loan guarantees to fund its massive infrastructure build-out.
This follows OpenAI CFO Sarah Friar's comments at the Wall Street Journal's business conference, where she said government backing could help attract the huge capital needed for AI computing infrastructure, especially given the uncertainty around how long AI data centers remain viable.
According to Friar, federal loan guarantees would "really drop the cost of the financing," making it easier for OpenAI and its investors to borrow larger sums at lower interest rates.
If approved, the guarantees from such a proposal would lower OpenAI's borrowing costs by shifting the risk of loss to the government should the company default.
It would also widen the pool of potential lenders, since many banks and investment firms are restricted in how much they can lend to high-risk ventures.
In a post on X, she wrote later in the day that OpenAI is not asking the US government to guarantee its infrastructure commitments. She said using the word "backstop" had caused confusion and that her point was about the US government and private sector jointly supporting industrial capacity for technology leadership.
She emphasised that the US government has been "incredibly forward-leaning" and recognises AI as a national strategic asset. "We're looking for an ecosystem of banks, private equity, maybe even governmental," Friar said.
November 6, 2025The statement comes as OpenAI accelerates spending on computing infrastructure, prompting concerns about how it plans to recover the massive outlays.
Estimates suggest OpenAI has already signed roughly $1 trillion worth of infrastructure agreements this year, including a $300 billion partnership with Oracle and a $500 billion Stargate project with Oracle and SoftBank.
Friar also shot down speculation of an imminent stock market debut. "IPO is not on the cards right now," she said, reiterating that growth remains the company's primary focus.
Recent news reports had indicated OpenAI was gearing up for a public listing after completing a governance overhaul that would allow the company to take on public shareholders. The company had also recently converted into a for-profit firm, shedding the non-profit status.
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