Billionaire investor Ray Dalio said the booming artificial-intelligence market shows signs of a bubble that will eventually burst.
"All great technology changes produce bubbles," Dalio, the founder of Bridgewater Associates, said Wednesday in a Bloomberg Television interview. "Nobody can get it exactly right. You have to either spend a ton of money to capture your market share and don't worry about whether it's too much or not, or you don't spend enough money and you lose your market share."
Chipmakers have been the hottest stocks on Wall Street, driven by demand for high-bandwidth chips used in AI data centers and taking the market to record heights. That surge has set off a debate about whether investors are buying into a overheated market. Nvidia Corp. Chief Executive Officer Jensen Huang, seeking to dispel concerns, this week touted "insane" returns for investors willing to bet on the AI boom.
Bubbles pop when it comes time to turn capitalize on investments, Dalio said, noting concerns about the profitability of AI companies.
"The pricking is the converting of wealth into money," he said. Today's AI-driven market is "following that kind of path, even though it is a wonderful technology."
Dalio is the founder of Bridgewater Associates, one of the world's largest hedge funds. The 76-year-old finalized his exit from Bridgewater in 2025, selling the last of his remaining stake and stepping aside from the board. His net worth is $21.5 billion, according to the Bloomberg Billionaires Index.
Photo: Bridgewater Associates
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