White House AI czar rules out federal bailout for the sector

-David Sacks, the White House artificial intelligence and crypto czar, said that there will be no federal bailout for AI, as U.S. races to cement its position as a global leader in the booming technology.

AI has cemented itself as the single biggest catalyst for global corporate investment and the engine of the market rally, even as some question the sustainability of both.    "The U.S. has at least 5 major frontier model companies. If one fails, others will take its place," Sacks said in a post on his personal X account on Thursday .    He added that the United States wants to make permitting and power generation easier, the "goal is rapid infrastructure buildout without increasing residential rates for electricity."

U.S. President Donald Trump in January announced a joint venture called Stargate, a $500 billion AI infrastructure initiative that is central to Washington's push for dominance in the field.    Last month, U.S. Energy Secretary Chris Wright directed federal energy regulators to consider a rule aimed at speeding up the connection of power-hungry data centers to electric grids.