Why backstop Is Trending Today?

OpenAI's CFO initially suggested a federal 'backstop' for chip investments, sparking controversy. Sam Altman, OpenAI's CEO, later distanced himself from these comments, stating that governments should not pick winners or losers. The tech community has since been discussing this issue, dubbing it "Backstopgate".

OpenAI's CFO, Sarah Friar, clarifies that the company is not seeking a government backstop for its loans. Despite earlier remarks, OpenAI now states that it does not want a federal backstop for its new investments. The company maintains that government support is crucial for increasing industrial AI capacity.