AI encryption Tsar: OpenAI is mistaken as the beginning of the AI bubble, and the fall of tech stocks is a natural correction.

AI encryption czar David Sacks stated in the latest episode of “All-In Podcast” on November 8 that the public mistakenly interprets OpenAI's remarks as a “need for government bailouts,” even viewing it as the catalyst for the burst of the AI bubble, which has led to a widespread fall in tech stocks. He emphasized that the real issue lies not in funding, but in the limitations of AI infrastructure due to power and regulatory bottlenecks. As for the recent pullback in tech stocks, it is merely a natural market correction, entering a cooling period.

$1.44 billion and government guarantee claims ignite rescue storm

The controversy stems from the statements made by two senior executives at OpenAI. Founder Sam Altman previously stated in an interview that the company will invest up to $1.44 trillion in building AI infrastructure over the next eight years, and expects annual revenue to reach $20 billion by the end of 2025.

However, the market quickly focused on the “large disparity between expenditures and revenues,” questioning the company's financial pressure. Subsequently, CFO Sarah Friar mentioned in an interview with The Wall Street Journal that the U.S. government may play the role of a “last guarantor” in the future, helping to ensure smooth financing. Her intention was to indicate that if the government could provide policy support or guarantees, it would assist companies in raising funds.

However, this statement was interpreted by the outside world as OpenAI wanting the government to step in for rescue, and the two conversations were pieced together into a sensational claim:

“OpenAI is spending too much money, can't hold on much longer, needs government assistance.”

No one is talking about government bailouts; it's all just excessive speculation.

In this regard, Sacks stated that the entire incident has been amplified and misled by social media. He pointed out that the outside world mistakenly took Sam Altman's “1.44 trillion dollars expenditure” as OpenAI's own out-of-pocket expense, and misunderstood the “government guarantee role” mentioned by CFO Sarah Friar as the government coming to the rescue.

Sacks emphasized that was not her intention at all, and no one is talking about any government bailouts. This is just an overreaction media storm; the AI industry is fiercely competitive, and there is absolutely no such thing as a “too big to fail” company.

(OpenAI CFO: There is no plan for an IPO at this time, and the market should not overly worry about an AI bubble)

The bottleneck in AI development is not a lack of funding; the key lies in regulatory approval.

Sacks also believes that the outside world has completely missed the point. The problem with AI is not “lack of funds,” but “whether it can be built.” He pointed out that what truly hinders OpenAI and other large companies are the approval issues related to electricity, land use, environmental assessments, and grid access, rather than insufficient financing.

The government should not subsidize or ensure profits, but rather relax restrictions and allow enterprises to build their own power sources, enabling data centers to be established smoothly without community opposition. It emphasizes that the government should help eliminate obstacles, rather than just write checks.

(OpenAI Founder: The government should not guarantee for enterprises, the development of AI infrastructure should rely on market competition)

The AI stock pullback is not caused by anyone's remarks; the market has simply entered a period of calm.

The outside world believes that the fall of AI concept stocks is entirely due to Altman's remarks. At that time, Altman was asked on the show:

“OpenAI only made 1.3 billion USD, but it wants to spend 1.44 trillion USD?”

The outside world sees this conversation as the trigger for the AI bubble to burst. However, Sacks believes this is just an exaggerated interpretation. He stated that he has also been on countless shows, and it's inevitable to misspeak; if Altman could do it again, he would probably respond more smoothly.

Sacks explained that the market has entered a “calm period,” where investors are starting to calmly calculate the massive capital expenditures invested in AI over the past two years and reassess whether these expenses can actually bring long-term returns. He pointed out that this is not just an issue for OpenAI, but a natural correction affecting the overall tech stocks.

This article AI Encryption Tsar: OpenAI is mistaken as the beginning of the AI bubble, and the fall of tech stocks is a natural correction first appeared in Chain News ABMedia.