Venture capitalist David Sacks, serving as President Donald Trump’s artificial intelligence and crypto czar, stated on Thursday that there will be "no federal bailout for AI." The comment comes in response to recent remarks by OpenAI’s CFO, Sarah Friar, who suggested the need for a private-public partnership to support infrastructure investments in AI. Sacks emphasized that the U.S. already has at least five major frontier AI model companies, and if one fails, others are positioned to step in. "The U.S. has at least 5 major frontier model companies. If one fails, others will take its place," he wrote in a post on X. Friar had made the initial comments during a Wednesday interview, where she discussed the need for a financial "backstop" or guarantee from the federal government to help fund the massive infrastructure required for AI development. She later clarified her position on LinkedIn, explaining that her use of the term "backstop" was misleading. "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," she wrote. She stressed that OpenAI is not seeking a direct government bailout, but rather a collaborative approach to ensure the U.S. can scale its AI infrastructure effectively. Sacks acknowledged that the Trump administration supports streamlining permitting processes and improving power generation to accelerate AI infrastructure deployment. His goal, he said, is to enable rapid construction of data centers and computing facilities without increasing electricity costs for residential users. "To give benefit of the doubt, I don't think anyone was actually asking for a bailout. (That would be ridiculous.)," Sacks added, reinforcing the administration’s stance that AI innovation should be driven by market forces and private investment, not taxpayer-funded rescue efforts.