TREASURY REPORT WARNS AI MARKET MIRRORS DOTCOM CRASH

A confidential Treasury Department report under review compares aspects of the current AI market to the dot-com crash that devastated tech valuations two decades ago, according to draft documents obtained by NOTUS. The report identifies structural similarities between today's AI investment landscape and the speculative excess that characterized the late 1990s tech bubble. Key concerns likely include inflated valuations, unsustainable burn rates, and limited near-term profitability among AI companies despite massive capital investments. The cautionary analysis represents a divergence between public messaging and internal government assessment. While the Trump administration has publicly championed AI development and promised regulatory support for the sector, Treasury Department analysts are conducting rigorous risk evaluation behind closed doors. The dotcom crash wiped out trillions in market value and left dozens of internet companies bankrupt after years of exponential speculation. Investors had funded unprofitable business models based on explosive growth projections that never materialized. The AI sector has attracted unprecedented capital flows in recent years, with major technology companies and startups raising billions for large language models and generative AI applications. However, questions persist about monetization timelines and sustainable revenue models for many AI ventures. The Treasury report's release could influence policy discussions around AI regulation, antitrust action, and federal support for the industry. It may also impact investor behavior and venture capital allocation to the sector. The comparison to the dotcom era does not necessarily predict an identical market collapse, but rather flags risks that policymakers and investors should monitor closely as AI technology matures and the market separates viable long-term businesses from speculative ventures.