House Dems Want AI Firms To Know Congress Won’t Bail Them Out If They Go Bankrupt

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.