Democratic members of the U.S. Senate Committee on Banking, Housing and Urban Affairs, led by Ranking Member Elizabeth Warren, wrote to Financial Stability Oversight Council (FSOC) Chair Scott Bessent urging FSOC to launch a formal investigation into financial stability risks tied to rapidly expanding debt financing for artificial intelligence infrastructure buildouts. The lawmakers argue that AI and Big Tech firms are increasingly funding large data center investments through complex and opaque debt structures, including private credit, securitizations and off-balance-sheet financing, which they say can obscure leverage and transmit losses across banks, insurers, private credit funds, real estate investment trusts, pensions and retail investors. The letter cites early signs of stress in AI-related debt markets, warns that projected spending could outstrip near-term demand and revenue growth, and raises concerns that some AI companies are advocating for government support if an AI bubble bursts, referencing OpenAI’s calls for “de-risking” measures such as expanded tax incentives and loan guarantees. The Senators ask FSOC to work with the Treasury Department’s Office of Financial Research to compel data from financial institutions with exposure to AI-related debt and to use FSOC authorities to address any risks identified, and they request written confirmation by February 13, 2026.

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