The tech industry is grappling with the uncertainty of investing in cutting-edge technologies like AI, where executives struggle to predict revenue and chip production costs. In a recent WSJ Tech Live conference, OpenAI CFO Sarah Friar proposed a “backstop” or guarantee from financial institutions and possibly the federal government to support its massive data center build-out. However, this idea has sparked controversy among investors and lawmakers, with some fearing it could lead to unnecessary taxpayer funding for potential AI failures. Despite concerns, OpenAI CEO Sam Altman insists that his company does not need federal guarantees or bailouts if it fails. The debate highlights the high stakes of investing in AI research and development, where industry leaders must balance innovation with risk management.
Source: https://www.wsj.com/tech/ai/how-are-we-gonna-pay-for-this-8966c7c3