In a recent podcast interview, Elon Musk once again issued a stark warning about the growing debt of the United States of America, noting that the country, without mass application of artificial intelligence and robotics, “will 1000% end up in bankruptcy.” According to him, there is no alternative solution that could stabilize public finances.
Musk claims that the only realistic way out of the debt crisis is to provide time for the widespread use of AI and robots, in order to reduce the debt burden through increased productivity and economic activity. Without that technological flywheel, he warns, the US could plunge into financial collapse before new technologies even take off.
Mask: AI and robotics as the only way out of the debt spiral
During the conversation, he was asked why, despite his belief in technological growth, as the head of the US Department of Government Efficiency (DOGE), he strongly insisted on reducing budget expenditures. Musk replied that such an approach was necessary due to, as he claims, widespread waste and fraud within the state apparatus.
Bots and drones UKHe stated that the US public debt currently amounts to about 38.5 trillion dollars, while the annual interest costs have already exceeded the US military budget, as well as expenditures for certain key social programs. “Without artificial intelligence and robots, we’re really done,” Musk reiterated, stressing that it’s the only mechanism that can change the country’s fiscal trajectory in the long term.
Mask expressed similar views earlier, warning that the mass application of AI and robotics could lead to strong growth in the production of goods and services, but also to serious deflation. In his opinion, this would solve the debt problem, but with new macroeconomic challenges.
Ray Dalio, the founder of the world’s largest hedge fund Bridgewater, previously warned about the growing risks of the US debt. Dalio believes the U.S. is entering a so-called “debt death spiral,” in which new debt is used to pay interest on existing debt. However, unlike Musk, Dalio does not expect formal bankruptcy, but resorting to money printing, which would lead to an accelerated weakening of the dollar.
The decline in the purchasing power of the US currency is already visible. According to data from the Federal Reserve in Minneapolis, $100 in 2025 is worth only $12.06 in 1970. On this occasion, Musk previously warned that if the current trend of debt growth continues, the dollar will eventually “become worthless”.