Bessent dismisses AI bubble concerns, says big tech spending brings revenue to OpenAI and Anthropic

U.S. Treasury Secretary Scott Bessent on Sunday defended the recent rise in Treasury yields, saying the move reflected a global trend rather than a U.S.-specific problem. He said there were no signs of investors dumping Treasuries in favor of German or Japanese government bonds. The 10-year Treasury yield recently touched its highest level since 2002.

Bessent attributed part of the inflation pressure to higher oil prices stemming from the Iran conflict, and said the energy shock should ease as the conflict subsides.

On AI, he pushed back against concerns of a bubble, saying capital spending by Microsoft, Google and Meta is backed by solid business logic and is generating meaningful revenue for companies such as Anthropic and OpenAI.

He also defended U.S. financial assistance to Argentina, where Washington in 2025 bought pesos and provided a $20 billion swap line to help stabilize the currency. Bessent said Argentina's stabilization contributed to a historic shift in Latin America and suggested similar aid could be extended to other allies. He also cited U.S. support for Japan's currency, including the first coordinated joint yen-buying intervention since 1998.