On Wednesday, Sen. Elizabeth Warren (D-Mass.) warned that OpenAI could be positioning itself for taxpayer support.
Warren Blasts Taxpayer ‘Backstop’ Idea
Warren took to X and criticized after its chief financial officer previously suggested the government could serve as a financial “backstop” if the company struggled to pay its bills.
“YOUR tax dollars as their ‘backstop,'” Warren wrote. “Meanwhile, OpenAI pays its employees an average of $1.5 million a year in stock compensation. Wow. That’s just wrong.”
In December 2025, the Wall Street Journal reported that OpenAI is paying employees an average of about $1.5 million each in stock-based compensation.
This makes it the highest-paying tech startup in recent history, the report said, citing investor financial data.
OpenAI did not immediately respond to Benzinga’s request for comments.
Fears Of Privatized Profits, Socialized Losses
Warren also shared a report by The Verge published last month detailing her demand for assurances that OpenAI will not seek a government bailout if it fails to turn a profit.
In a letter to OpenAI CEO Sam Altman, Warren said she is concerned the company is following “the classic strategy of privatizing profits and socializing losses.”
Warren warned that ChatGPT-maker has committed to more than $1 trillion in spending despite not yet reaching profitability and “appears to be seeking government assistance should it prove unable to pay its bills.”
OpenAI Pushes Back, But Questions Remain
OpenAI has repeatedly denied seeking government guarantees. After CFO Sarah Friar’s “backstop” comments last year sparked backlash, she walked them back and Altman said the company does “not have or want government guarantees” for its data centers.
Warren, however, said those statements do not clearly rule out federal loans, loan guarantees, or industry-wide support that could still benefit OpenAI given its scale.
What Warren Is Demanding From Altman
Warren has given Altman until Feb. 13, 2026, to respond with details about any discussions with the U.S. government, the federal support OpenAI favors and its tax credit requests.
She is also seeking financial projections through 2032, including whether any ChatGPT plans are profitable or expected to be within the next three years.
OpenAI Revenue Hits $20 Billion As Compute Expansion Accelerates
In January 2026, OpenAI said its annualized revenue run rate topped $20 billion in 2025, up 233% from 2024, following rapid growth from $2 billion in 2023 to $6 billion in 2024.
The company also said it expanded compute capacity from 0.2 gigawatts in 2023 to 0.6 gigawatts in 2024, climbing to about 1.9 gigawatts in 2025 — nearly a tenfold increase in just two years.
Despite the growth, OpenAI is reportedly burning more than $17 billion a year, with subscription revenue alone potentially insufficient to sustain its highly compute-intensive AI operations.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Sheila Fitzgerald / Shutterstock.com
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