"Pointing to the fact that AI companies like Microsoft, Google, Amazon, and Meta have been driving a disproportionate amount of growth in the stock market and the economy, Ocasio-Cortez said that "the exposure of this industry and this investment, I fear, has reached broad levels, potentially, of the American economy." "We're talking about a massive economic bubble," Ocasio-Cortez said. "Depending on the exposure of that bubble, we could see 2008-style threats to economic stability.""
"She also said that if such a bubble were to pop at some point in the future, there should be no federal bailout of AI companies. "We should not entertain a bailout of these corporations, as healthcare is being denied to everyday Americans, as SNAP and food assistance is being denied to everyday Americans, precipitating some of the very mental crises that people are turning to AI chatbots to try to resolve in themselves," she said."
AI companies such as Microsoft, Google, Amazon, and Meta have driven a disproportionate share of recent stock market and economic growth, expanding exposure across the American economy. That expanded exposure raises the possibility of a massive economic bubble with potential for 2008-style threats to economic stability. No federal bailout should be provided to AI corporations if such a bubble pops. Diverting public support to corporate bailouts would be unjust while healthcare, SNAP, and food assistance are being denied to many Americans. OpenAI executives briefly discussed a possible federal backstop and subsequently walked back those comments. Concerns about an AI bubble stem in part from circular spending within the tech industry.
Read at Business Insider
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