The thought that this would also destabilize the AI bubble did come to mind, but the current government loves to crash the market on Fridays, only to backpeddle on Mondays.
A related thought though, the AI boom is predicated on the idea that everyone's going to want or need all this "mass produced" intelligence. But what happens to that when you go from being able to claim to have a total market size of ~8B people, to ~400M peoole? I think the reason to push ahead at any cost evaporates.
It's honestly not the worst strategy: make the dangerous move when you have the most tolerance, and then everyone can figure stuff out and make the landing on Sunday.
There’s no back peddle once you’ve demonetized by fiat for being too big. Once you doo it you prove you will do it again for the very reason the bubble is inflating. It’s a binary one way door and it’s already happened. It’s like killing the supreme leaders entire family and maiming him and expecting he will be happy to meet with you, that ship has sailed and magical thinking won’t undue the incredible atrocity you visited on him - you’ve created a mortal enemy for all time. This is an administration of mental gnats.