Bubble Fears Spark Bailout Debate As Trump Eyes Government Stakes

House Democrats have introduced a resolution opposing federal bailouts for failing AI companies and their financiers, as financial risks around the AI boom intensify. The debate comes while the Trump administration considers acquiring government stakes in major AI firms, and concerns grow about infrastructure costs, rising debt, and uncertain returns. Reuters reports the Nasdaq 100 fell more than 5.8% in October, wiping out over $2 trillion in market value as sustainability worries spread. Analysts quoted include Morgan Stanley’s forecast of AI infrastructure spending exceeding $1 trillion in 2027 and JPMorgan’s estimate of $5.5 trillion globally by 2030.