US Treasury Secretary Scott Bessent said on October 21 that he sees no systemic risk in the current artificial intelligence boom, a remark that appears intended to address market concerns that heavy AI investment could turn into a bubble.

Speaking at a closed-door investor event in New York hosted by JPMorgan and Robin Hood, the charity founded by Paul Tudor Jones, Bessent told hundreds of senior financial executives and investors that he did not view the AI rally as posing a system-level threat.

Organizers said the event was not open to the media, with tickets starting at $7,500 and top sponsorship packages reaching $100,000. Proceeds support low-income New Yorkers, and the event has raised nearly $72 million to date.

According to people familiar with the event, Bessent discussed AI during a 30-minute interview with the chief executive of Bridgewater. Asked whether AI investment had become risky, he said that his long experience watching macro markets allows him to tell when a system begins to show signs of stress. But in his view, the AI sector has not reached the point of systemic dysfunction. He dismissed comparisons between the current AI boom and the dot-com bubble, saying, "This is no Pets.com," and noted that many top investors have committed substantial net worth to related companies and believe in the direction of the technology.

Bessent's comments came during a period of heightened market sensitivity. AI-related stocks have become more volatile in recent weeks, and some investors have begun paying attention to valuations, financing for data-center construction, and the debt pressure associated with the expansion of the chip industry. Some analysts argue that the current influx of capital around AI resembles the frenzy of the dot-com bubble around the turn of the century.

In the second half of the interview, Bessent was broadly positive about AI's long-term role in the US economy, saying the technology could raise productivity and strengthen the competitiveness of the world's largest economy. He also pointed out, however, that data centers and AI companies have not done enough to explain the benefits of the technology to ordinary people, which can lead to misunderstandings.

The US Treasury Department later said that the views Bessent expressed in a private setting had previously been made in public and criticized related reporting as inaccurate about the charitable event. Kevin Thompson, Robin Hood's chief communications officer, said the event has long been held in closed-door form and does not publicly release remarks. The organization has previously invited current, incoming or departing government advisers and cabinet members to participate. Paul Tudor Jones said Bessent has supported the charity since the 1990s.

Former Treasury Secretary Janet Yellen said she usually makes sure reporters are present when she speaks at events, because if government officials are perceived to be conveying sensitive information to a small group of market participants, it can create reputational and compliance risks. The Federal Reserve has clear requirements for officials involved in interest-rate decisions to avoid giving any for-profit institution a reputational advantage over competitors in public-facing engagements, and it recommends that officials speak in front of media and make their remarks public.

There is currently no specific rule prohibiting the US Treasury Secretary from holding private meetings with major market participants without journalists present. Bessent regularly holds closed-door discussions with market participants to understand market conditions and investor views, a practice that is not uncommon at the Treasury Department.

The event also featured macro investor Stanley Druckenmiller and hedge fund manager Steve Cohen. Mike Davis, founder of the conservative legal nonprofit Article III Project, said the event was essentially a charity function and that government officials should be encouraged to attend and speak.