US Treasury Secretary Scott Bessent told investors at a private New York event that he does not see a "systemic problem" in the AI boom, playing down fears that the industry resembles the bubble that preceded the dotcom bust.
Bessent spoke to a gathering of hundreds of finance executives and investors convened by JPMorgan Chase and Robin Hood, the non-profit founded by billionaire hedge fund manager Paul Tudor Jones. Tickets cost at least $7,500, and the event was closed to the press. In an interview with Bridgewater chief executive Nir Bar Dea, Bessent said, "I'm good at figuring out when there are problems in systems," adding, "I don't see a systemic problem," according to three people present.
Bessent's comments come at a sensitive moment. Financial markets have faced several bouts of turbulence in recent weeks as some investors question whether the surge in AI stocks has gone too far, and worry about the vast amount of debt issued to finance data centres and chips.
Elsewhere, the US National Security Agency warned that vulnerabilities in a programming language underpinning the internet, discovered using AI tools, had left websites worldwide critically exposed to hacking. Meta also agreed a deal letting Mark Zuckerberg sell shares without losing control of the company, in exchange for a commitment to stay in California even if the state passes a proposed wealth tax.
Source: Financial Times Companies · Summarized by HeadlinesBriefing