The IMF warns of echoes of the 1990s dot-com boom in the current surge of AI-related spending by U.S. companies. The U.S. leads global AI spending, with tech giants like Meta, Amazon, Microsoft, and Alphabet investing billions. Concerns arise over a potential AI bubble that could harm the economy, akin to the dot-com crash.

AI capital expenditures are projected to reach 2% of U.S. GDP in 2025, driving robust economic growth. Without this spending, U.S. business investment would decline, especially amid uncertainties like tariffs. Analysts fear an AI bubble burst could lead to job losses and slower growth, reminiscent of the dot-com bubble’s aftermath.

Read more at Yahoo Finance: The AI boom echoes the ’90s dot-com bubble, IMF says