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Billionaire Ray Dalio says we’re nearing point where AI bubble may burst

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Billionaire Ray Dalio says we’re nearing point where AI bubble may burst

Business News Tech AI Billionaire Ray Dalio says we’re nearing point where AI bubble may burst

Billionaire Ray Dalio says we’re nearing point where AI bubble may burst

Speaking at the Forbes Global CEO Conference in Singapore on Wednesday, Dalio said that a huge amount of debt is being taken out to fund AI. As rates continue to climb, that is a point at which the bubble begins to pop.

Billionaire Ray Dalio warned that artificial intelligence is a “classic bubble” that is nearing a bursting point thanks to rising interest rates and the need to turn wealth into cash. Speaking at the Forbes Global CEO Conference in Singapore on Wednesday, Dalio said that a huge amount of debt is being taken out to fund AI. As rates continue to climb, that is a point at which the bubble begins to pop. “We’re in the part of the cycle that is before that but approaching that,” the Bridgewater founder said. “I think we’re close to that.”

His comments come as technology giants spend hundreds of billions of dollars on AI, increasingly financed with debt, and as market gains concentrate in a handful of stocks. Bond yields around the world have surged to the highest in decades, increasing the cost of funding the enormous investment needed to build AI infrastructure. Still, equity valuations continue to rise, with optimism over technology earnings propelling the S&P 500 and Nasdaq 100 indexes to record highs this week. Dalio, who has long warned of an AI bubble , said there were other issues that could trigger its collapse.


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