In an interview with CNN, the Texas billionaire said he accepted President George W. Bush's contention that immediate intervention is required to prevent "a distressing scenario" in the U.S. economy.
Pickens also confirmed that his energy-related hedge funds have lost $1 billion this year.
He said the U.S. Treasury could benefit from the assistance of Warren Buffett, whose Berkshire Hathaway Inc. reportedly paid $5 billion this week for a substantial share of Wall Street investment bank Goldman Sachs, CNN said.
Pickens said Washington should go along with Treasury Secretary Henry Paulson's request to receive bailout money up front.
"I'd give Paulson the money and tell him get it fixed," Pickens said.
He said he thinks the bailout will work but "it needs to work quickly."