Straight up, it would be mortally dangerous for federal US reps to bailout tech. The industry is wildly unpopular, has openly threatened labourers with forced redundancy, polluted and\or poisoned vulnerable communities, and houses some of the most famous billionaires in the country. This is not an industry that thousands of blue-collar workers depend on for wages and produces products that people need to survive. Also, the US state is subject to the most open resistance and condemnation it has had since the Civil Rights Era (even privileged groups find the erasure of wealth disparity appealing now too).

Seriously, I think if this were to happen, it would result in violent retaliation.

For her to bring this up more than likely means there are already conversations happening around this topic. I wonder if cheeto in chief is already offering to "nationalize" every one of these companies like what happened with Intel.

Yall already know Trump has those blank bailout checks sitting on his desk right now. He's just waiting for Microsoft, Palentir, Google, and so many more to tell him how much they want.

Good. Let the ones who can, survive. Not be swarmed by zombies.

I can't see a scenario where a bailout doesn't happen but I also don't see it being beneficial if a bailout does occur.

While the automakers bailout boosted an industry that was on major trouble, they were able to return to profitability in the end and pay back those loans right? The whole A.I. industry has never turned a profit, so even if we bail them out, the fundamental model as it is now would just revert to a known unprofitable state.

You could argue that you should bail out the hardware companies so you don't cripple the chip manufacturers, and foundries, but there is no financial benefit that I can see to bail out a llm developer. If you were going that route. I would say they have to nationalize the software companies but I don't want that being part of the government at fucking all.

OFC we’re going to bail them out

AOC is right, if AI bubble burst, companies shouldn't be bailed out. I want to remind people that not ALL bubble bursts have resulted in bail outs. When the dot-com burst, there were no bailouts. There was a short recession of 8 months, and the rest of the world continued on in its aftermath. When the commodities bubble burst, in the 2000s there was no bail out. When the housing bubble burst, there was bailout because banks had lent too much money into the housing bubble. If banks fail, there would be bank runs, and that contagion would have spread everywhere and the entire financial system would have collapsed. Currently, there are no bank debts nor bonds being issued to spend billions on AI data centers. The danger will be when leverage is used to fund these trillion-dollar outlays. Currently there is very little debt tied to AI bubble. Most of the AI spending is coming from the humongous tech companies with loads of cash on hand and with fat profit margins who are plowing it all into AI data centers. When it does go bust, their valuations will deflate but the business will still remain. Watch for use of leverage or debt in AI. Once it enters the equation, that's where the systemic risk will begin to tick up.

Let them have it baby!

Meanwhile, crap, crap! What to do? Crap!

There's got to be some way we can opt out of our money being used for bailouts.

She's right, but unfortunately, the industry has already bought enough of her fellow congresspeople that there will be a bailout.

And once again, just as with the real estate bubble, after reaping all of the profits, the wealthy few will offload the losses onto us, so once again we'll be the ones suffering, while the people who created the crisis will be out buying more mansions and bigger yachts with the money they stole from us.

Maybe we entertain the idea of bailing out ordinary folks for a change.

Oh we are writing so many blank checks for billionaires and their companies.

Why we can't afford billionaires - Exhibit X

The Stargate burned through 8 billion a year, but at least it protected the world from aliens. This Stargate is just going to cost the world another financial crash. Hopefully it kills a few of these companies when it does. Microsoft, Google, Amazon, OpenAI, Perplexity, ... the world would be better off without them.

But there's no way the US government will let any of its shining beacons of capitalism fail.

Uhh we should not be considering a bailout for AI companies under any circumstances. Seriously wtf is wrong with people that think that's available in anyway.

LET THEM FAIL

Although I dislike AOC and her constant "moderating" this statement is just blatantly correct.

Avoiding a bailout is going to be difficult, mostly because the incestuous money-cyclone of the AI industry is the only thing propping up the GDP.