Longcuff

🚨 US LAWMAKERS ARE NOW PREPARING FOR THE AI BUBBLE TO BURST. House Democrats have introduced a resolution opposing government bailouts for AI companies if the industry crashes. Instead of rescuing them with taxpayer money, lawmakers want failed AI companies to go through normal bankruptcy. And the timing is extremely concerning. Some of the world's biggest tech companies are investing billions into AI startups that spend heavily on their products. • Nvidia invests in CoreWeave, which buys Nvidia chips. • Microsoft invests in OpenAI, which spends billions on Microsoft's cloud services. • Amazon invests in Anthropic, which uses Amazon's cloud infrastructure. Billions are moving between companies that are becoming increasingly dependent on each other's spending. And lawmakers are raising concerns about the growing use of borrowed money by Big Tech and Wall Street to finance the AI boom. The resolution is not law, but it shows that some lawmakers are already worried about what happens if the industry collapses. If AI startups run out of funding, they could be forced to slash spending or declare bankruptcy, leaving their investors and suppliers facing massive losses. And without government bailouts, a major failure could spread across chipmakers, cloud providers, banks and the broader stock market. The biggest risk is that one major AI bankruptcy could trigger losses across an entire industry worth trillions.