The AI Bubble, Financial Risk, and Why Big Tech Should Not Be Bailed Out with Matthew Scherer

On May 28, The Capitol Forum hosted Matthew Scherer of the Open Markets Institute for a conference call discussing his recent report, “No Bailouts for Big Tech Billionaires: Policies for When the AI Bubble Bursts.”

The conversation examined growing concerns surrounding the financial structure of the AI industry, including debt-fueled infrastructure spending, speculative investment dynamics, and increasing connections between major technology firms and broader financial markets. Scherer explored whether the current AI boom is exhibiting characteristics of a systemic financial bubble and what policymakers should do if the market turns.