I can see bailing out banks, you need to keep money flowing. Bailing out something like auto industry. Lot of employees with non-transferable skills and restructuring will be mess.

With AI? Well just sell the assets in bankruptcy. Models can be sold, hardware and infra can be sold, IP and brands too can be sold. Employees, they have mostly transferable skills and are mobile already.

Even if AI companies fall, other people can pick up the pieces if there is something valuable left. Market might be affected. But I don't think it is only domino.

You don't typically get to be a successful politician by being skeptical of future industry profits. I suspect the people who run our country tend to be credulous rubes in this regard. Sam Altman is many things, but he appears very good at spelling a narrative about the future of computation and the relative competitive risk of not aggressively pursuing it. Google simply has not taken this approach.

Cause goverment loves them grifters and once they are bailed out they will gift things to the king personally.

Otherwise said, high level corruption that is not even hidden these days.

"oh the US cannot afford to lose the AI race to China, Mr President"