AI companies make up 1/3 of the current stock market value in the US. Nvidia alone is 7% of the stock market. 92% of 2025 GDP growth in the US has been from AI. They will get bailed out.
I am at a loss to what that would even look like. The bubble popping would mean the admission of AI (LLMs) not having a viable path to usefulness or return, so then what would a bail out even be? Money? To what end, the bubble would have burst and the idea of AI (LLMs) being anything but a money pit would be what makes the bubble burst in the first place. Unless they can show a path to profit (they can’t) then the bubble will burst in time or continue in an endless zombie state where they just pretend that somehow AI (LLMs) are the future while burning capital. If it does go into a zombie state (as so many other things in the us market are becoming) then the whole market will just slowly fail as the “hype” turns into disappointment. The only reason that the zombie state would be preferable is that entities need to invest their money somewhere and maybe some other thing in the market can take AI (LLMs) place, but even then why bother bailing out anyone?
Bail out almost anyone that bought tech stocks? Seems unlikely, and it would be basically admitting the end of the stock markets legitimacy. Bailouts tend to be for companies on the edge of collapse.
I wanna say you’re wrong, because AI is absolutely not an essential service - like say a water or power company failing would be (or arguably banks). But knowing how deeply the AI tech bros have sucked up to and supported Trump I have to sigh and agree with you that they will probably be rescued from their own stupidity by the taxpayer.
I think you’re part right. I think they’ll attempt a bailout, but I don’t believe Trump’s appointments and the administration they’re creating have the skill to plan or execute a bailout (or admit to failure enough to identify that they need one in a timely manner)
They’re more likely to ram the economy full speed into rock bottom, then blame an outgroup (“the Democrats did this”) and pretend nothing could have been done.
they’ll try to get bailed out but you would have to bail out so many companies it’s not feasible. you cant just bail out one of these companies. they all propped their stock value up on each other, so unless you bail out every company in the tech sector, there will still be trillions of market cap wiped out.
this is a good thing though. it will mostly only affect those who are overly invested in ultimately unprofitable tech, and the rest of us will be able to buy cheap stock for companies affected like Google and Amazon that will be hit massively but obviously are not just gonna go out of business. it’s similar to the covid drop. sucked for rich people but for the average person it wasn’t a massive issue and even had money making opportunities attached to it as these big companies scrambled.
AI companies make up 1/3 of the current stock market value in the US. Nvidia alone is 7% of the stock market. 92% of 2025 GDP growth in the US has been from AI. They will get bailed out.
I am at a loss to what that would even look like. The bubble popping would mean the admission of AI (LLMs) not having a viable path to usefulness or return, so then what would a bail out even be? Money? To what end, the bubble would have burst and the idea of AI (LLMs) being anything but a money pit would be what makes the bubble burst in the first place. Unless they can show a path to profit (they can’t) then the bubble will burst in time or continue in an endless zombie state where they just pretend that somehow AI (LLMs) are the future while burning capital. If it does go into a zombie state (as so many other things in the us market are becoming) then the whole market will just slowly fail as the “hype” turns into disappointment. The only reason that the zombie state would be preferable is that entities need to invest their money somewhere and maybe some other thing in the market can take AI (LLMs) place, but even then why bother bailing out anyone?
Investors could be bailed out. As in you invested 10e11$, so now the government gives you that money back.
Bail out almost anyone that bought tech stocks? Seems unlikely, and it would be basically admitting the end of the stock markets legitimacy. Bailouts tend to be for companies on the edge of collapse.
I wanna say you’re wrong, because AI is absolutely not an essential service - like say a water or power company failing would be (or arguably banks). But knowing how deeply the AI tech bros have sucked up to and supported Trump I have to sigh and agree with you that they will probably be rescued from their own stupidity by the taxpayer.
I think you’re part right. I think they’ll attempt a bailout, but I don’t believe Trump’s appointments and the administration they’re creating have the skill to plan or execute a bailout (or admit to failure enough to identify that they need one in a timely manner)
They’re more likely to ram the economy full speed into rock bottom, then blame an outgroup (“the Democrats did this”) and pretend nothing could have been done.
they’ll try to get bailed out but you would have to bail out so many companies it’s not feasible. you cant just bail out one of these companies. they all propped their stock value up on each other, so unless you bail out every company in the tech sector, there will still be trillions of market cap wiped out.
this is a good thing though. it will mostly only affect those who are overly invested in ultimately unprofitable tech, and the rest of us will be able to buy cheap stock for companies affected like Google and Amazon that will be hit massively but obviously are not just gonna go out of business. it’s similar to the covid drop. sucked for rich people but for the average person it wasn’t a massive issue and even had money making opportunities attached to it as these big companies scrambled.