Senator Elizabeth Warren introduced new legislation on Thursday that would compel financial firms to report their exposure to companies tied to artificial intelligence to federal regulators.
Called the AI Bubble Transparency Act, the measure would obligate institutions to disclose both debt and equity exposures to a set of AI-related counterparties - including chip manufacturers, data center operators, cloud-service providers and hyperscalers - to the Treasury Department's Office of Financial Research (OFR). Under the bill's terms, the OFR would be required to transmit the collected information to Congress within one year.
The proposal arrives amid a period of surging AI financing, with companies tapping multiple credit markets to secure capital. The bill's introduction cites as context a major private credit financing: Apollo Global Management and Blackstone completed a $35 billion financing package for Anthropic PBC to expand AI infrastructure, which the proposal describes as one of the largest private credit transactions on record.
In a related action earlier this year, Senator Warren urged Treasury Secretary Scott Bessent in January to scrutinize AI financings and the risks they might pose to the financial system.
"AI and Big Tech companies are increasingly reliant on shadowy forms of debt and balance sheet magic to fund their multi-trillion dollar AI buildouts," Warren said. "The AI Bubble Transparency Act will give regulators and Congress the information they need to identify risks early and protect our economy from another preventable financial crisis."
Senator Richard Blumenthal is listed as a co-sponsor of the legislation. Both Warren and Blumenthal sit in the Senate minority and therefore do not have the procedural means to force a vote on the bill.
Under the bill's reporting requirements, financial firms would need to submit detailed data on credit exposure. The required fields would include the type of debt instrument, the size of the exposure, the issuing company or counterparty, interest rate, maturity term, and any collateral backing the obligation. Lenders would also have to provide borrower-level information such as annual revenue, income figures, and total debt outstanding, explicitly including off-balance-sheet liabilities.
The legislation would further direct the Financial Stability Oversight Council (FSOC) to prepare a public report summarizing the findings. That report would assess how interconnected the financial system is with AI-related companies and estimate the degree of indirect exposure through other linkages. Following publication, the FSOC would be tasked with making recommendations to its member agencies and to Congress on steps to address any identified financial stability risks.
The bill frames its aims around improving transparency in the face of rapidly expanding AI investments and complex financing structures. It sets specific reporting fields and deadlines for federal review, and it assigns follow-up responsibility to a multi-agency stability body to evaluate systemic implications and propose remedies.