Wall Street Millennial
June 16, 2026
OpenAI's Strategy for Government Funding Through Public Wealth Fund
TL;DR
OpenAI CEO Sam Altman is lobbying the Trump administration to create a government-owned public wealth fund that would receive free equity shares, allegedly to fund massive data center spending commitments the company cannot afford while facing severe financial losses.
Key Takeaways
- 1OpenAI is losing billions quarterly despite $5.7B in Q1 2026 revenue, with $600B in spending commitments over 5 years it cannot sustain
- 2Sam Altman originally claimed AI would eliminate jobs to justify a public wealth fund, but later admitted AI hasn't significantly impacted employment
- 3OpenAI's proposal involves giving free government shares to create a 'too big to fail' perception ahead of an IPO planned for September 2026
- 4The company is simultaneously pursuing government subsidies for electricity grid expansion and taxpayer funding for free ChatGPT access
- 5OpenAI conducted covert propaganda campaigns and political donations to shape public opinion toward treating AI development as a national security priority
Notable Quotes
“I'm delighted to be wrong about this. I thought there would have been more impact on entry-level white collar jobs being eliminated by now than has actually happened.”
— Sam Altman
“The CEOs of the leading AI labs have told us repeatedly that they will cause massive job losses. This is not a story that I believe, nor does the data bear it out, but this is what they have told us.”
— David Sax
“Nationalization of AI will accelerate the corporate government fusion we're already sliding towards. Conservatives rightly fear a central bank digital currency. They ought to be even more concerned about central government AI, a system with even more totalistic power over information, decision-making, and human behavior.”
— David Sax
Chapters
1. OpenAI's Financial Crisis and Bailout Attempts
OpenAI has a long history of seeking government support, from requesting loan guarantees in November 2025 to proposing a public wealth fund in 2026. The company faces unsustainable spending commitments of $600B over 5 years against annual revenue of ~$23B.
2. The Public Wealth Fund Proposal
Sam Altman proposed that the government create a sovereign wealth fund to receive free OpenAI equity shares. Profits would eventually be distributed to US citizens. This builds on OpenAI's April 2026 white paper advocating for government investment in AI infrastructure and subsidized access to AI models.
3. Job Displacement Narrative Collapse
Altman originally claimed AI would cause massive job losses to justify government intervention, but admitted in May 2026 that AI has had minimal employment impact. Despite this, OpenAI continues lobbying for subsidies using the same national security rationale.
4. Financial Reality and IPO Concerns
OpenAI's Q1 2026 financials show $7B operating losses despite $5.7B revenue. CFO Sarah Frier expressed skepticism about an IPO feasibility, but Altman overruled her concerns. Weekly active users peaked at 920M in February but declined after, with only 6% paying for subscriptions.
5. Propaganda and Political Influence Campaigns
In May 2026, Greg Brockman was revealed to be running covert propaganda paying TikTok users to post pro-AI videos framing AI as national security. Brockman also donated $25M to a pro-Trump PAC to gain political influence.
6. Political Reactions and National Security Framing
Bernie Sanders proposed 50% government equity expropriation in AI companies. Trump signaled openness to government stakes in AI firms. Critics like David Sax argue the national security framing is fabricated and government ownership risks authoritarian AI control.
Key People & Entities
- Sam Altman
- CEO of OpenAI; architect of public wealth fund proposal and strategy to secure government backing
- Sarah Frier
- CFO of OpenAI; expressed concerns about IPO feasibility given spending commitments and financial losses
- Greg Brockman
- President of OpenAI; orchestrated covert propaganda campaigns paying TikTok users to post pro-AI content
- David Sax
- Former Trump AI adviser; rejected government bailouts and equity stakes in AI companies as economically unnecessary and politically dangerous
- Bernie Sanders
- US Senator; proposed 50% government equity expropriation in major AI companies including OpenAI
- Donald Trump
- US President; signed executive order for sovereign wealth fund planning; signaled openness to government stakes in AI companies
- OpenAI
- AI company behind ChatGPT; losing billions annually while seeking government subsidies and equity partnerships
Glossary
- Sovereign Wealth Fund
- A state-owned investment fund capitalized with government resources to invest in assets and distribute profits to citizens; typically used by oil-rich nations
- Operating Loss
- Loss incurred from core business operations before accounting for financing costs; indicates a company's primary business is unprofitable
- IPO (Initial Public Offering)
- The process of offering shares of a corporation to the public for the first time, allowing it to raise capital from public investors
- Loan Guarantees
- Government promise to repay a loan if the borrower defaults, reducing lender risk and making borrowing easier
- Stock-Based Compensation
- Employee compensation in the form of company stock or stock options, representing a significant non-cash expense