A PYMNTS Company

No Federal Bailout for AI, Says White House Tech Chief

By  |  November 6, 2025

The White House’s top official overseeing artificial intelligence and cryptocurrency policy, David Sacks, said there will be no federal rescue packages for struggling AI firms as the United States accelerates efforts to lead in the rapidly expanding technology sector, according to Reuters.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    AI has become the driving force behind global corporate investment and one of the most significant contributors to the ongoing market surge. Still, questions remain about how sustainable that momentum is, per Reuters. Sacks addressed those concerns in a post on his personal X account Thursday, stating that “the U.S. has at least 5 major frontier model companies. If one fails, others will take its place.”

    Sacks emphasized that the administration is focused on expanding infrastructure and power access to support AI growth. He added that the government’s goal is to make energy permitting and power generation more efficient while ensuring “rapid infrastructure buildout without increasing residential rates for electricity,” according to Reuters.

    Read more: Newsom Veto Signals Growing Caution on Implementing AI Regulations

    In January, President Donald Trump announced Stargate, a $500 billion AI infrastructure initiative viewed as the centerpiece of Washington’s strategy to secure dominance in artificial intelligence, per Reuters. The sweeping plan underscores the administration’s intent to strengthen U.S. leadership amid global competition from other tech powerhouses.

    More recently, U.S. Energy Secretary Chris Wright instructed federal regulators to explore a rule that would expedite the process of connecting energy-intensive data centers to the national grid, according to Reuters. The move highlights the growing pressure on America’s power networks as AI systems demand massive computing resources.

    Together, these steps mark an ambitious federal effort to scale AI infrastructure while avoiding market distortion through government bailouts—a balance Sacks suggested is key to maintaining innovation and competition in one of the world’s fastest-moving industries.

    Source: Reuters