California Rep. Maxine Waters is leading the fight against potential government bailouts for struggling artificial intelligence (AI) companies, arguing that tech billionaires should face the consequences of their own risky investments rather than expect American taxpayers to rescue them. Her push comes amid growing fears that the US AI boom could follow China’s trajectory, where a spectacular stock market rally has already given way to a $480 billion wipeout as investor confidence falters.
The 88-year-old Democrat joined forces with Congressional Progressive Caucus Chair Greg Casar (D-TX) on October 29 to introduce a resolution opposing federal financial assistance for artificial intelligence companies that collapse if the industry’s booming market turns into a bubble.
Instead, the lawmakers want the federal government to prioritize workers, retirees, and low-income families who could suffer the consequences of an economic downturn. “If it all comes crashing down they should not expect taxpayers to rescue them,” Waters said in a statement. “The American people should never again be forced to foot the bill for billionaires’ reckless bets.”
The resolution also draws comparisons with ...