Warren Presses FTC, Pepsi on Dismissal of Pricing Bias Lawsuit

Senator Elizabeth Warren (D-MA) is pushing OpenAI for assurances it won’t seek a government bailout if it doesn’t turn a profit. In a letter to CEO Sam Altman, Warren says she is concerned that the company is preparing to fall back “on the classic strategy of privatizing profits and socializing losses” amid soaring spending and growing fears of an AI bubble popping.

Warren writes that she is worried OpenAI “has committed to more than a trillion dollars in spending despite not yet turning a profit” and “appears to be seeking government assistance should it prove unable to pay its bills.” The senator, a ranking member on the Senate Committee on Banking, Housing, and Urban Affairs, says the company’s “increasingly tangled web of speculative, debt-based industry partnerships and circular spending arrangements” creates risk for the entire US economy, which could leave the government with little option but to step in should the AI industry falter. Warren points to CoreWeave as an example, noting that the company is saddled with debt to fulfill its contract with OpenAI, which has “comparatively little debt on its own balance sheet.”

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