A U.S. Treasury Department draft report warns that an AI market collapse could trigger widespread economic disruption similar to the dotcom bubble burst. Treasury analysts found that AI firms are more deeply entrenched in the broader U.S. economy than their dotcom predecessors, making a downturn particularly risky for stock markets, private credit, and data center investments. The report identifies vulnerabilities including concentrated industry control, infrastructure dependency, and supply chain risks, though it acknowledges leading AI companies are more mature and profitable than late-1990s ventures.
