BREAKING: The US government's own analysts just warned of an AI bubble.
And the Treasury Department rejected the report the same day it leaked.
A Treasury staffer wrote a draft report comparing today's AI investment frenzy to the dot-com bubble and warning that a sharp correction could ripple through the entire economy.
The official response from the Treasury Department: "AI will be a key driver of America's new Golden Age."
Here is what the buried report actually said.
AI companies are now so deeply embedded in financial markets that a sharp contraction would spread far beyond Silicon Valley.
Investors are betting on AI companies delivering rapid productivity gains and profits. If those expectations fall short, companies could slash spending, investors could pull back and economic growth could slow.
The report also warned that millions of Americans' 401k plans are now heavily concentrated in the handful of tech companies driving the AI boom. A sharp correction would hit retirement savings directly.
Treasury Secretary Scott Bessent has publicly championed AI investment while simultaneously suppressing the report his own department produced warning against it.
Big Tech is on track to spend over $750 billion on AI infrastructure this year.
The government's own analysts think that could end badly.