OffTheRecord

🚨 CONGRESS IS NOW DISCUSSING WHAT HAPPENS IF MAJOR AI COMPANIES GO BANKRUPT. House Democrats have introduced a resolution calling for AI companies to receive ZERO taxpayer funded bailouts if they collapse. AI spending by Amazon, Microsoft, Alphabet, Oracle, Meta and SpaceX is expected to top $7 trillion from 2025 to 2030, per S&P. Big Tech is expected to borrow a record $420 billion in 2027 alone. Now, lawmakers are discussing what should happen if those massive investments go wrong. The resolution calls for: • No taxpayer funded bailouts for failing AI companies. • No emergency loans, cash injections or debt guarantees from the Fed, Treasury or FDIC. • Failed AI companies to go through normal bankruptcy proceedings. • Executives responsible for reckless or illegal conduct to face accountability. • Government support to protect workers and retirement savings instead of corporate executives. The resolution is not legally binding, and it does not mean lawmakers know an AI crash is coming. But it shows the risk is now being taken seriously in Congress. And there is a reason to pay attention. AI companies are spending enormous amounts of money today based on expectations of future demand and profits. If those expectations fail, the damage could spread beyond AI companies to banks, lenders and investors financing the expansion.