Elon Musk issues another warning: Without AI and robots, the US will go bankrupt by 1000%

Tesla CEO Elon Musk recently issued a stern warning on the U.S. debt issue, stating that without artificial intelligence (AI) and robotics, the United States will definitely go bankrupt.

In a podcast interview last week, when asked why, despite technology’s ability to drive economic growth and reduce debt burdens, Musk was still advocating for significant spending cuts during his tenure as head of the Department of Government Efficiency (DOGE), he responded that he was concerned about waste and fraud within the government.

He also said, “Without artificial intelligence and robotics, we are truly finished because U.S. national debt is skyrocketing.”

Musk pointed out that the interest payments on the current $38.5 trillion U.S. debt amount to about trillions of dollars annually, a figure that even exceeds the U.S. military budget. The cost of debt repayment also surpasses social programs like Medicare.

Discussing his experience working at DOGE, Musk said he originally hoped to slow down America’s unsustainable fiscal trend and buy more time for AI and robotics to stimulate economic growth.

“This is the only way to solve the national debt problem. If we don’t have artificial intelligence and robotics, this country will 1000% go bankrupt and decline,” Musk stated. “There is no other way to solve the national debt problem. We need enough time to deploy AI and robotics to avoid falling into bankruptcy before that.”

In November last year, Musk made a similar statement, saying that large-scale deployment of AI and robotics is the only way to solve the U.S. debt crisis. But he also warned that the increased output of goods and services from these technologies could trigger severe deflation.

Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, previously warned that the U.S. is heading toward a “debt death spiral,” where the government has to borrow simply to pay interest—creating a vicious cycle that continually reinforces itself.

However, unlike Musk, Dalio does not believe the U.S. will go bankrupt.

“There will be no default—the central bank will step in, we will print money and buy bonds,” he said. “And this will lead to currency devaluation.”

In other words, from a technological perspective, the government may never “run out of money,” but the dollar could rapidly depreciate. Musk also warned that if current trends continue, “the dollar will become worthless.”

The decline in the dollar’s purchasing power is already evident. According to data from the Minneapolis Fed, $100 in 2025 will have the same purchasing power as $12.06 in 1970.

(Source: Cailian Press)