(DCNF)—House Democrats introduced a resolution Wednesday calling on Congress to withhold support for artificial intelligence (AI) companies if they go bankrupt as polling shows Americans largely oppose AI development on the eve of the midterm elections
The simple House resolution states that Congress would oppose any measure that would rescue insolvent AI-related firms or shield senior executives from accountability for “reckless conduct that contributed to the failures of such firms.” Democratic Reps. Greg Casar of Texas and Maxine Waters of California introduced the resolution; a simple House resolution just expresses the sentiment of the House of Representatives and is not legally binding, meaning it does not require Senate or presidential approval.
The document states AI firms should “wind down or reorganize” through ordinary bankruptcy processes, administer resolution processes that promote competition, help workers and prioritize pension and retirement fund holders. It states that senior executives found to have taken excessive risk or acted unlawfully should “be held fully accountable under civil and criminal law.”
Technology companies are increasingly relying on outside investors, financial guarantees and complex financing arrangements to fund their data center expansion. Those arrangements could leave substantial obligations outside conventional debt disclosures, making it difficult to determine who bears the risk if anticipated AI profits fail to materialize.
S&P estimates that Amazon, Microsoft, Alphabet, Oracle, Meta and SpaceX will collectively spend more than $7 trillion on AI-related capital expenditures between 2025 and 2030.
The largest tech companies in the U.S. were expected to borrow a record $420 billion in 2027 to finance the AI boom on Wall Street. Debt issuance was projected to rise 60% from 2026 levels as companies pour money into data centers, chips and other AI infrastructure, Goldman Sachs data found. Investors have grown concerned about how much additional debt will hit the market as companies rush to construct the infrastructure needed to compete in AI.
Major AI chipmakers such as Nvidia, Advanced Micro Devices (AMD) and Broadcom have expressed interest in investing up to $5 billion collectively in Meta while it seeks billions to fund its expanding AI infrastructure. These investments provide an opportunity to benefit financially from the expansion of AI infrastructure, although there is potential risk involved if demand for AI infrastructure slows.
An ABC News/Washington Post/Ipsos poll from Oct. 21 found that 57% of Americans believe AI is bad for society, while 42% viewed it favorably. Most U.S. adults, 64%, said AI is developing too quickly, according to a survey conducted by The Associated Press-NORC Center for Public Affairs Research.
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