U.S. Treasury Draft Report Warns of AI Bubble Risk Similar to Dot-Com Era

According to Jin10, citing NOTUS, a U.S. Treasury Department draft report issued July 7 warned that the AI market carries bubble risks comparable to the dot-com era. The report, prepared for Treasury Secretary Bessent, Federal Reserve Chair Powell, and other federal financial regulators, states that AI companies are now more deeply integrated into the U.S. economy than internet-era firms were, and could pose significant financial system risks if funding dries up, productivity targets fail to materialize, or key supply chain bottlenecks emerge.

A Treasury Department spokesperson disputed the draft's conclusions, calling it unvetted and unrepresentative of the department's official policy. The official stance is that AI will be a key driver for the U.S. economy's new "Golden Age," bringing unprecedented productivity gains and economic opportunities.