U.S. Treasury internal report warns of potential AI bubble risks

The U.S. Treasury released an internal report highlighting AI market concerns. Analysts warned that rapid investment could create a speculative bubble. The document cited overvaluation in AI‑related assets. Potential fallout could affect broader financial stability. Policymakers are urged to monitor capital flows into AI ventures. The report recommends increased transparency in AI funding. It also suggests coordination with other regulatory bodies. Stakeholders are advised to assess risk exposure in AI portfolios.