Source: New York Post
A draft Treasury Department report is warning that an artificial intelligence bubble could put millions of Americans’ retirement savings at risk if the industry goes through a major downturn — even as leaders from Washington to Silicon Valley tout AI as the engine of a new economic boom. The internal analysis, obtained by NOTUS, concludes that AI companies have become so deeply embedded in financial markets that a sharp contraction would ripple far beyond Silicon Valley, hitting stock markets, private credit, banks, utilities, chipmakers and cloud providers — sectors that dominate many retirement portfolios. The report likens parts of today’s AI investment frenzy to the dot-com bubble, though it concludes any fallout would likely be less severe than the crash that followed the internet boom in the early 2000s.
