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.
Wouldn't a bailout worthy event already lead to stock market crash? Basically market run would be triggered if there was something that warranted a bailout. So would there be much to bailout to still prop-up the market?
I think the stock market prices in the value of being "too big to fail".
So bailing out might actually cause the stock to appreciate because uncertainty about the possibility of bailout suddenly disappears in a positive manner.
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.