Federal backstop for AI

Extracted Attributes

• Proposed by

  Sarah Friar (OpenAI CFO)

• Rejected by

  David Sacks (Trump's AI and crypto czar)

• Advocacy for

  Federal Preemption for AI (to establish unified national standards)

• Related concept

  AI Race (geopolitical competition between US and China)

• Clarified meaning

  Government's role in facilitating industrial AI capacity through financing mechanisms (e.g., guarantees to reduce financing costs and increase loan-to-value)

• Regulatory context

  Debate between fragmented State AI Regulation (US) and centralized approach (China)

• Initial interpretation

  Government bailout request for OpenAI

• Parallel regulatory challenge

  Autonomous vehicle liability (evolving legal and insurance implications)

Timeline

• OpenAI CFO Sarah Friar mentions a "Federal backstop for AI" in the Wall Street Journal, which was widely perceived as a bailout request for OpenAI amidst concerns over its $1.4 trillion spending commitments and an "AI bubble." (Source: related_documents, web_search_results)

  2023-11-17

• Sarah Friar quickly walks back and clarifies her comments, stating OpenAI is not seeking a government backstop for infrastructure commitments but rather government's role in facilitating industrial AI capacity through financing mechanisms. (Source: related_documents, web_search_results)

  2023-11-17

• David Sacks, Trump's AI and crypto czar, publicly rejects the idea of a federal bailout for AI, emphasizing the robust competition in the AI sector. (Source: related_documents, web_search_results)

  2023-11-17

Self-driving car liability

Increases in the use of autonomous car technologies (e.g., advanced driver-assistance systems) are causing incremental shifts in the control of driving. Liability for incidents involving self-driving cars is a developing area of law and policy that will determine who is liable when a car causes physical damage to persons or property. As autonomous cars shift the control of driving from humans to autonomous car technology, there is a need for existing liability laws to evolve to reasonably identify the appropriate remedies for damage and injury. As higher levels of autonomy are commercially introduced (SAE automation levels 3 and 4), the insurance industry may see higher proportions of commercial and product liability lines of business, while the personal automobile insurance line of business shrinks. Self-driving car liability and self-driving vehicle liability may be impacted by changes in regulation of self-driving vehicles being developing in some countries.

Web Search Results

• Trump AI Czar David Sacks Rejects Idea of Federal AI Bailout

  David Sacks, President Donald Trump’s AI and crypto czar, said Thursday that the administration will not support a federal bailout for AI companies. His comments followed heightened attention on remarks made by OpenAI Chief Financial Officer Sarah Friar, who referenced the idea of a federal “backstop” while discussing infrastructure financing needs. [...] Sacks posted on X that “there will be no federal bailout for AI,” emphasizing that the U.S. has “at least 5 major frontier model companies. If one fails, others will take its place.” His statement reflects the administration’s stance that competition—not federal guarantees—should guide AI development. ### OpenAI CFO Clarifies “Backstop” Comment [...] Friar’s initial remarks came during a conference where she discussed the scale of investment required for frontier AI systems. She said OpenAI aims to work with private equity, banks, and potentially a federal “backstop” or “guarantee” as part of a broader financial ecosystem to support infrastructure buildout.

• Regulating Artificial Intelligence: U.S. and International Approaches ...

  Additional laws have directed individual federal agencies—including the General Services Administration (GSA) and OMB—to support the use of AI across the federal government: [...] Generally, proponents of comprehensive federal AI regulations assert that such regulations would lead to less legal uncertainty for AI developers and improve the public's trust in AI systems, thus supporting AI innovation. Opponents of broad federal AI regulation assert that the AI industry is already taking steps to self-regulate and that additional regulation would stifle innovation and competitiveness at a time when international competition in AI is accelerating, which could lead to [...] presents many potential benefits and challenges in the private and public sectors. No federal legislation establishing broad regulatory authorities for the development or use of AI or prohibitions on AI has been enacted. Recent Congresses have passed primarily more targeted AI provisions. Different Administrations have focused their attention on federal engagement in AI, albeit with somewhat different emphases on specific topics. The focus on AI safety under the Biden Administration appears to

• AI in Action: 5 Essential Findings from the 2024 Federal AI Use Case ...

  In select cases, OMB granted extensions to agencies that requested additional time to implement the required safeguards. Additional information on these extensions can be found on cio.gov. The Federal Government continues to lead the world in the safe and responsible use of AI. To read more about all the ways Federal agencies are using AI and implementing concrete safeguards to protect the public’s rights and safety while doing so, view the full listing of use cases here. ❮ Back to News [...] Federal agencies are leveraging both internal expertise and external partnerships to integrate AI into their operations at relatively proportional rates, which ensures the government can innovate and adapt AI technologies according to its specific needs. 4. Federal agencies are showcasing increased AI maturity, including by accelerating access to necessary tools and infrastructures for development. For AI currently in operation within an agency: [...] 1. Compared to 2023, Federal agencies have more than doubled their AI use in the last year, citing improvements to operational efficiency and the execution of their missions as key drivers for increased utilization.

• [PDF] America's AI Action Plan - The White House

  taken multiple steps toward this goal, including rescinding Biden Executive Order 14110 on AI that foreshadowed an onerous regulatory regime.3 AI is far too important to smother in bureaucracy at this early stage, whether at the state or Federal level. The Federal government should not allow AI-related Federal funding to be directed toward states with burdensome AI regulations that waste these funds, but should also not interfere with states’ rights to pass prudent laws that are not unduly [...] large, established organizations. Many of America’s most critical sectors, such as healthcare, are especially slow to adopt due to a variety of factors, including distrust or lack of understanding of the technology, a complex regulatory landscape, and a lack of clear governance and risk mitigation standards. A coordinated Federal effort would be beneficial in establishing a dynamic, “try-first” culture for AI across American industry. Recommended Policy Actions • Establish regulatory sandboxes [...] and software engineers), with input from the Office of Personnel Management. • Create an AI procurement toolbox managed by the General Services Administration (GSA), in coordination with OMB, that facilitates uniformity across the Federal enterprise to the greatest extent practicable. This system would allow any Federal agency to easily choose among multiple models in a manner compliant with relevant privacy, data governance, and transparency laws. Agencies should also have ample flexibility to

• OpenAI walks back statement it wants a government 'backstop' for its ...

  "I want to clarify my comments earlier today. OpenAI is not seeking a government backstop for our infrastructure commitments. I used the word “backstop,” and it muddied the point," Friar said in her post. "As the full clip of my answer shows, I was making the point that American strength in technology will come from building real industrial capacity, which requires the private sector and government playing their part." [...] When asked for clarification, she continued; "First of all, the backstop, the guarantee that allows the financing to happen, that can really drop the cost of the financing but also increase the loan to value, so the amount of debt you can take on top of an equity portion for..." Krouse then pressed her, asking if that meant a "federal backstop for chip investment?" Stay On the Cutting Edge: Get the Tom's Hardware Newsletter [...] Skip to main content Trending Early Black Friday Deals Win 10 EOL GTC 2025 Intel 18A Panther Lake Battlefield 6 1. Tech Industry # OpenAI walks back statement it wants a government 'backstop' for its massive loans — company says government 'playing its part' critical for industrial AI capacity increases News By Jon Martindale published It was more a suggestion that it would be a good idea, or something that would be useful... Comments (0) (Image credit: Getty Images/Bloomberg)