If Trump is still in charge when the bubble pops, he'll do everything he can to bail them out. Altman knows how to flatter people, and he's doing that constantly with Trump. A significant part of Trump's base is silicon valley techbros who will lose their shirts if the bubble collapses. They had enough sway to get their guy installed as the VP. Getting a bailout will be easy for them. If they get poor, they won't be able to fund the MAGA movement.

Even if Trump isn't in charge anymore. Businesses that have fired a lot of employees and replaced what they did with LLM slop will say their businesses will be ruined if the bubble suddenly pops, so they'll frame it as the economy collapsing if the LLM bubble is allowed to pop. Not to mention they'll claim it's a national security matter because if American LLMs disappear the only ones left will be Chinese ones, and that would be a threat to national security. The fact that the military is extensively using LLMs in their bombing of Iran shows how integrated they now are into the way the military does things, and you can't ask the military to just go back to how things were done 5 years ago!

I expect that when the LLM bubble starts to pop, there will be enormous bailouts from the government, adding tens of trillions to the US debt. That's a long-term thing and will be someone else's problem.

I think a potential OpenAI "bailout" should go something like this:

• The investors get their money back.
• They have to sign a pact that they must not invest into AI anymore for a given amount of years (20+ minimum).
• Massive regulatory overhaul to make sure stuff like this never happen. Also undo Ford v. Dodge Brothers.
• Scam Altman and the others go to life in prison.