openai, scale ai and google Updates

OpenAI, the company behind ChatGPT, has been at the center of discussions regarding massive investments in artificial intelligence infrastructure. Initially, OpenAI's CFO Sarah Friar indicated on November 5 and 6, 2025, that the company was seeking US government loan guarantees to help finance its ambitious AI chip and data center expansion, which could eventually cost over US$1 trillion. These plans include significant deals, such as US$300 billion with Oracle and a US$500 billion Stargate project, with Friar noting that government backing would lower financing costs. Despite being the world's most valuable startup, OpenAI is currently losing money due to its aggressive spending on AI infrastructure and research, and an immediate initial public offering is not planned as growth remains the primary focus. However, Friar later clarified that OpenAI is not asking for a government bailout, but rather highlighting the need for cooperation between the government and private sector to expand US tech capabilities. White House AI czar David Sacks has already dismissed the idea of large-scale federal bailouts for AI companies. This push for AI infrastructure is part of a broader trend, as TrendForce predicts cloud service providers like Google, Meta, Amazon, and Microsoft will collectively spend over US$600 billion in 2026 on AI infrastructure, marking a 40% increase from the previous year. This significant investment signals a new growth period for the AI hardware ecosystem, driving demand for components like GPUs, memory, and liquid cooling systems. NVIDIA's full-rack AI solutions are expected to see substantial gains, while AMD's Helios platform will be adopted by Meta and Oracle. Morgan Stanley further forecasts cloud companies spending approximately US$3 trillion on infrastructure by 2028, which will require significant debt funding. The demand for AI hardware is already evident, with Coherent reporting strong first-quarter results, including sales of US$1.58 billion, a 17% jump from last year, driven by data centers and communication companies investing in AI. Despite the surging AI stock market, investment analysts like Dan Ferris of Stansberry Research and Jeffrey Cohen of DoubleLine are advising caution due to high volatility, inflated valuations, and risks associated with new funding methods and the unknown profitability of AI projects. Cohen specifically warns fixed-income investors about funding the AI boom, fearing severe reactions and losses if projects do not prove profitable. In other AI-related news, voice AI company SoundHound AI reported Q3 CY2025 revenue of US$42.05 million, beating analyst estimates with a 67.6% increase year-over-year, but also posted a larger-than-expected GAAP loss of US$0.27 per share, indicating inefficiencies in customer acquisition. Meanwhile, shares of competing robotaxi companies fell sharply after their listings in Hong Kong, reflecting a challenging market response to these autonomous vehicle startups.

Key Takeaways

• OpenAI initially sought US government loan guarantees to fund its AI infrastructure expansion, which could reach US$1 trillion, including deals with Oracle and SoftBank.
• OpenAI CFO Sarah Friar later clarified that the company is not seeking a bailout but advocating for government-private sector cooperation to enhance US tech capabilities.
• White House AI czar David Sacks has dismissed the idea of large-scale federal bailouts for AI companies.
• Cloud service providers, including Google, Meta, Amazon, and Microsoft, are projected to spend over US$600 billion on AI infrastructure in 2026, a 40% increase from the previous year.
• Morgan Stanley predicts cloud companies will spend approximately US$3 trillion on infrastructure by 2028, requiring substantial debt funding.
• Coherent reported strong Q1 sales of US$1.58 billion, a 17% year-over-year increase, driven by demand for AI infrastructure from data centers.
• NVIDIA's full-rack AI solutions are expected to see significant gains, and AMD's Helios platform will be adopted by Meta and Oracle.
• Investment analysts warn of high volatility, inflated valuations, and risks in the AI market, particularly concerning new funding methods and unknown project profitability.
• SoundHound AI reported Q3 CY2025 revenue of US$42.05 million, up 67.6% year-over-year, but also posted a larger-than-expected GAAP loss of US$0.27 per share.
• Shares of robotaxi companies dropped sharply after their listings in Hong Kong, indicating a challenging market response.

OpenAI Asks Government for AI Chip Investment Help

OpenAI, known for its ChatGPT tool, is seeking government backing for its plans to acquire more artificial intelligence chips and build data centers. OpenAI CFO Sarah Friar stated at a Wall Street Journal conference on Wednesday, November 5, 2025, that government guarantees would significantly lower financing costs. She noted that the company could achieve healthy profitability if it were not investing so aggressively in AI infrastructure and research. OpenAI is the world's most valuable startup but is currently losing money due to this extensive spending. Friar also dismissed reports of an immediate initial public offering.

OpenAI Seeks US Government Loan Guarantees for AI Growth

OpenAI, the creator of ChatGPT, is asking the US government for loan guarantees to support its massive AI infrastructure expansion, which could eventually cost over US$1 trillion. OpenAI CFO Sarah Friar explained at a Wall Street Journal business conference on Thursday, November 6, 2025, that government backing would lower borrowing costs and attract necessary investments. This unusual request for a Silicon Valley company would help OpenAI secure more money at better rates. The company has committed to huge deals, including US$300 billion with Oracle and a US$500 billion Stargate project, but its current revenues do not cover these high computing costs. Friar confirmed that an IPO is not planned soon, as growth is the main focus.

OpenAI Asks US for Loan Help to Fund AI Expansion

OpenAI, the creator of ChatGPT, is asking the U.S. government to provide loan guarantees for its massive infrastructure expansion. Speaking at a Wall Street Journal business conference on November 6, 2025, OpenAI CFO Sarah Friar explained that government backing would lower financing costs and attract the huge investment needed for AI computing and data centers. OpenAI has committed to approximately $1 trillion in infrastructure deals this year, including partnerships with Oracle and SoftBank. While the company expects billions in revenue, this amount falls short of covering its extensive computing costs. Friar also stated that an initial public offering is not planned at this time, as the company focuses on growth.

AI Stocks Soar But Investors Must Be Careful

Artificial intelligence is changing markets and creating many investment opportunities, causing AI stocks to surge. However, this rapid growth also brings high volatility and risks for investors. Dan Ferris, an investment analyst at Stansberry Research, advises caution due to inflated valuations. He suggests focusing on companies with strong fundamentals, sustainable business models, and a clear path to profitability, rather than chasing speculative hype. Investors should carefully check company valuations, strong balance sheets, and long-term goals, while also diversifying their investments and managing risks.

Coherent Sees Big Sales and Profits From AI Demand

Coherent reported strong first-quarter results, with sales reaching $1.58 billion and beating Wall Street's predictions. The company's revenue jumped 17% compared to last year, driven by high demand from data centers and communication companies investing in AI infrastructure. Coherent also sold its Aerospace and Defense unit, which helped free up cash and boost profits. While the company's valuation is high, its success shows how AI is transforming the tech hardware industry and driving growth across the broader electronics sector.

Cloud Companies Boost AI Spending to Over $600 Billion

TrendForce predicts that cloud service providers will spend over US$600 billion in 2026 on AI infrastructure, marking a 40% increase from the previous year. This significant investment signals a new growth period for the AI hardware ecosystem. Major companies like Google, Meta, Amazon, and Microsoft are substantially increasing their capital spending for AI data centers and cloud services. This trend will drive demand for AI servers and related components such as GPUs, memory, and liquid cooling systems. NVIDIA's full-rack AI solutions are expected to see significant gains, while AMD's Helios platform will also be adopted by Meta and Oracle.

Robotaxi Company Shares Drop After Hong Kong Listing

Shares of competing robotaxi companies fell sharply after their listings in Hong Kong. This drop indicates a challenging market response to these new public offerings. Investors reacted negatively to the performance of these autonomous vehicle startups. The Hong Kong market saw a significant decline in their stock values.

OpenAI Clarifies It Is Not Seeking Government Bailout

OpenAI's CFO Sarah Friar has clarified that the company is not asking the government for financial guarantees for its AI infrastructure investments. She stated that her earlier comments were meant to highlight the need for government and private sector cooperation to expand US tech capabilities. Previously, Friar suggested government backing could lower financing costs for AI firms. However, White House AI czar David Sacks has already dismissed the idea of large-scale federal bailouts for AI companies. OpenAI, valued at $500 billion, has made huge deals with Oracle and SoftBank, but concerns about an AI bubble remain.

DoubleLine Warns About Risks in AI Debt Funding

Jeffrey Cohen, director of global developed credit at DoubleLine, is warning fixed-income investors to be careful about funding the artificial intelligence boom. He advises caution regarding the tech sector and related industries that support new AI projects. Cohen points out that many AI capital projects use new funding methods, like off-balance sheet funding, and their profitability is still unknown. He fears that if these projects are not profitable, it could lead to severe reactions and losses, even for related companies in power and chemicals. Morgan Stanley predicts cloud companies will spend about $3 trillion on infrastructure by 2028, requiring significant debt.

SoundHound AI Sales Rise But Losses Are Higher

Voice AI company SoundHound AI reported its Q3 CY2025 results, showing revenue of $42.05 million, which beat analyst estimates and was up 67.6% from last year. However, the company also reported a GAAP loss of $0.27 per share, which was worse than expected. Its Adjusted EBITDA and operating margin also showed significant misses. Despite strong revenue growth over the past few years, the company's customer acquisition efforts have not been efficient. The stock remained flat at $14.18 immediately after the report.

Sources

• OpenAI seeks government backing for AI chip investments By Investing.com
• OpenAI seeks government backing to boost AI investments
• OpenAI seeks government backing to boost AI investments
• AI Stocks Are Surging—But Volatility Could Be the Next Big Test
• Strong AI Demand Sends Coherent's Sales And Profits Higher
• CSP CapEx Expected to Exceed US$600 Billion in 2026, Ushering in a New Growth Cycle for the AI Hardware Ecosystem, Says TrendForce
• Rival robotaxi start-ups’ shares tank after Hong Kong listing
• OpenAI walks back remarks on government support for AI spending spree
• DoubleLine’s Cohen Sounds the Alarm on AI-Debt Funding Frenzy
• SoundHound AI’s (NASDAQ:SOUN) Q3 Sales Beat Estimates