Trump clashes with AI executives as economic stakes rise

President Donald Trump is clashing with AI executives over unchecked development, driven by fears that an AI slowdown could destabilize the US economy, which is increasingly reliant on the technology's massive investments. AI and data center spending account for a third of US economic growth in 2026, with AI investment driving half of S&P 500 profit growth, according to ING and Goldman Sachs. A sharp downturn could trigger recession, as Fitch Ratings projects GDP contraction of 1.5% next year if stock prices fall 35%. Economists warn the AI boom's collapse would hurt household wealth and corporate investment, though some experts like Wharton's Jessica Wachter see AI as a stabilizing force promoting job growth. Bond markets already signal concerns over debt and inflation, adding to economic fragility.