US Treasury Secretary sees no systemic problems in the AI boom

Global financial markets have seen repeated turbulence recently. Some investors question whether AI stocks are overvalued and worry about companies borrowing heavily to build data centers and buy chips. Some analysts think the current AI boom looks a lot like the dot-com era around the turn of the century.

According to the Financial Times, US Treasury Secretary Scott Bessent told investors at a private meeting in New York that he sees no systemic problems in the AI boom, downplaying fears of a repeat of the dot-com crash. The meeting was co-hosted by JPMorgan and the Robin Hood Foundation, with tickets starting at $7,500 and no reporters allowed.

Asked by the Bridgewater CEO, Bessent said he is good at spotting when a system is broken but sees no such signs. He is broadly positive about AI's benefits for America, adding this is not Pets.com — the world's smartest people have put 99% of their wealth into these companies, which built some of the most profitable businesses on the planet.