Bessent Dismisses "Systemic" AI Risk as Tech Selloff Deepens

The selloff comes as investors question the return on AI investments. Meta's drift into negative free cash flow has raised doubts about the costs of its AI push, while Alibaba's 6% drop accompanied China's entry into bear market territory. Bessent's dismissal of "systemic" risks contrasts with Citadel's chief calling AI "almost certainly a bubble." Blackstone President Jon Gray also dismissed parallels to the 1990s dot-com bubble, noting "Demand is almost parabolic" about a Blackstone-backed AI consulting firm created with Anthropic. These comments suggest a split between officials and investors on whether AI spending poses broad economic danger.