Elon Musk warns: America is heading towards bankruptcy without artificial intelligence and robots… and the public debt is approaching $40 trillion.

Elon Musk warns: America is heading towards bankruptcy without artificial intelligence and robots… and the public debt is approaching $40 trillion.

Tesla CEO Elon Musk warned that the United States faces a growing risk of its national debt ballooning to levels that could threaten the country’s financial stability, asserting that advancements in artificial intelligence and robotics may be the only way to avert this crisis. Musk made these remarks during an appearance on the Dwarkesh podcast , stating that the US is “1000% headed for bankruptcy and failure as a nation if it doesn’t achieve a productivity boom through AI and robotics.”

According to the report, the US national debt reached approximately $39.6 trillion , while government spending continues to exceed revenues. The federal deficit rose to approximately $1.37 trillion during the first nine months of fiscal year 2026. Musk believes that if this trend continues without a significant increase in productivity, the US economy will face increasing pressure, particularly given the rising cost of servicing the debt.

He pointed out that interest payments on the public debt now exceed the US defense budget , explaining that the government spends more than $1 trillion annually on debt interest alone, which he described as an increasing burden on the US economy.

The report noted that the war with Iran has contributed to increased financial pressure on the United States, as the direct cost of military operations so far has reached about $37.5 billion according to the US Department of Defense, while some experts estimate that the total cost may exceed $1 trillion in the long term when taking into account the interest on borrowing.

The report also noted that proposals to increase defense spending, in addition to new tax legislation, could lead to billions of dollars more in US debt in the coming years, which increases concerns about the government’s financial sustainability.

Elon Musk isn’t the only one concerned about the state of US public finances; the report also relayed warnings from several major investors. Ray Dalio , founder of Bridgewater Associates , cautioned that the US is entering what he termed a “debt spiral,” where the government is forced to borrow to pay interest on existing debt. However, he ruled out a formal default, suggesting that the Federal Reserve would likely resort to printing more money if necessary, which could lead to a decline in the dollar’s purchasing power.

For his part, JPMorgan Chase CEO Jamie Dimon warned that continued high debt and fiscal deficits could eventually lead to a bond market crisis if the government does not take action to address the situation.

The report reviewed a number of options that some investors believe could help protect wealth during periods of high inflation and rising government debt.

He noted that gold remains a key defensive asset, given its lack of correlation with any specific currency or economy, and that its price has risen by approximately 51% over the past twelve months, according to the report. He also quoted Ray Dalio and Jamie Dimon, who emphasized the importance of holding a portion of investment portfolios in gold as a hedging tool.

The report added that real estate also represents an effective means of hedging against inflation, as its value and rental income usually rise with rising prices. It also noted the growing interest of investors in alternative assets, such as fractional ownership of real estate and works of art, with the aim of diversifying investment portfolios and reducing risks.

Musk believes the long-term solution lies not simply in increasing borrowing or cutting spending, but in achieving an unprecedented productivity surge through artificial intelligence and robotics . This, he argues, would allow the US economy to increase its output at a pace sufficient to keep up with the rapid growth of the national debt. In contrast, a number of economists believe that addressing the US debt crisis will require a combination of fiscal reforms, spending controls, and economic growth stimulus, along with leveraging modern technologies to boost productivity, rather than relying on a single solution.