AI Debt Bubble May Trigger Trillion-Dollar Government Rescue

Arthur Hayes, managing partner of Maelstrom, believes that within the next 12 to 18 months, AI companies will face significant financial pressure due to data center debt. He cites Anthropic, OpenAI, and xAI as major buyers of AI computing capacity who may struggle with bills for data centers built on expectations of future demand.

Hayes warns that insurers hold some of this debt and predicts defaults could affect U.S. policyholders. To mitigate broader losses, officials might intervene, potentially unleashing a rescue worth 'multiple trillions of dollars.'

Hayes argues that governments could create money to contain these losses across a heavily indebted economy. He sees this liquidity as a possible boost for crypto markets.