UPDATE: Representative Alexandria Ocasio-Cortez has issued a stark warning about a potential “massive” economic bubble fueled by AI companies, likening it to the 2008 financial crisis. Speaking at a House hearing on September 26, 2023, Ocasio-Cortez emphasized the urgent need for scrutiny as major players like Microsoft, Google, Amazon, and Meta dominate the tech landscape.
“We’re talking about a massive economic bubble,” Ocasio-Cortez stated. She expressed concern that the rapid growth of the AI sector could expose the broader American economy to significant risks. “Depending on the exposure of that bubble, we could see 2008-style threats to economic stability,” she warned, highlighting the immediate relevance of her concerns.
The congresswoman strongly opposed any future federal bailouts for AI companies, stating, “We should not entertain a bailout of these corporations, as healthcare is being denied to everyday Americans.” She underscored the moral imperative, pointing out the increasing mental health crises Americans are facing while turning to AI chatbots for support.
Her comments come in the wake of mixed signals from industry leaders. Recently, OpenAI’s CFO Sarah Friar hinted at the potential need for federal support during an upcoming infrastructure buildout. However, she later backtracked, and OpenAI’s CEO Sam Altman clarified that the company is not seeking government guarantees.
Ocasio-Cortez is among the first members of Congress to openly address the possibility of an AI bubble, a topic of ongoing debate in tech circles. Concerns have been rising due to the tech industry’s circular spending and questions about whether the extensive investments in AI infrastructure will translate into profits.
As Wall Street braces for Nvidia to report earnings after the closing bell, all eyes will be on any indicators of weakness in the AI sector. Ocasio-Cortez criticized the pressure on companies to generate profits, stating that it drives them to create exploitative AI chatbots. “People’s deepest fears, secrets, emotional content, relationships can all be mined for this empty promise that we’re getting from these companies to turn a profit,” she asserted.
This urgent development raises critical questions about the future of AI and its impact on the economy. As concerns escalate, the industry and government must prepare for potential ramifications. The situation continues to evolve, and stakeholders are urged to remain vigilant in monitoring these developments.
