Too bad this is just pre-election grandstanding. It's a really good idea.

Usually we don't talk about a bailout until a catastrophe is underway. Then they say "We need to fix this now, because of systemic risk, and we'll worry about preventing future problems later". Declaring "we will not bail you out" before the bankruptcies tells everybody that they'd better protect themselves from moral hazard.

This is a good test case, too. The AI companies aren't nearly as intertwined with the rest of the economy as the banks are. They can fail without kicking off a domino effect. Let them.