Trump's AI czar: 'No bailout' for tech companies if they go bust
David Sacks assured that if a company fails with its operations, "others will take its place."
David Sacks, during an appearance in July 2025
The White House's cryptocurrency and artificial intelligence czar (AI), David Sacks, stated that the Trump Administration will not bail out any tech company, whatever its name, if it fails in its operations and goes bankrupt.
"There will be no federal bailout for AI. The U.S. has at least 5 major frontier model companies," Sacks said, in a posting on X. "If one fails, others will take its place."
These statements by Sacks come at a delicate time for major technology companies, which are posting significant stock market losses in recent days. In that situation are entities such as Nvidia, Alphabet, Apple, Microsoft, Tesla, Meta Platforms and Amazon.
From the analysis it is pointed out that the big tech companies are in a "bubble" - investing immense amounts of money in the development of AI and in the construction of data centers - that could burst at any moment.
Given that claim, along with the one that superintelligence is in the works for surge "superintelligence," Sacks believes both theories "can be fake," though he stopped short of being blunt about these issues.
"The two biggest narratives about AI right now are that (1) it’s a massive bubble (i.e. totally fake) and (2) about to give rise to superintelligence (i.e. totally real). Both narratives can be fake (which is what I believe) but it’s very unlikely that both can be true," he said.
LATEST
