Ray Dalio Warns of Bubble Forming in AI Market

Bridgewater Associates hedge fund founder, billionaire Ray Dalio stated that the rapid growth of the artificial intelligence (AI) market indicates the formation of an investment bubble, which could burst sooner or later. In an interview with Bloomberg Television, Dalio emphasized that all major technological revolutions are accompanied by periods of excessive investment. Ixbt.com reports .

According to him, market participants face a difficult choice: either spend too much capital to capture market share, or miss opportunities to competitors by not investing enough. In recent months, semiconductor manufacturers focused on AI infrastructure have been one of the main drivers of the stock market. The demand for high-performance chips for data centers has led to record-high quotes and sparked debates about the sector overheating.

NVIDIA CEO Jensen Huang, responding to investor concerns, emphasized that investments in the AI market are yielding "extremely high" returns and that the current technological cycle is stable. However, Dalio highlights a fundamental risk: in his opinion, the bubble will burst when expectations begin to translate into real cash flows and the market is forced to reassess companies' profit potential.

The billionaire noted that the current dynamics in the AI sector may repeat the typical scenario of technological cycles, where a period of rapid growth is replaced by a painful correction, regardless of the technology's real value. For reference, Ray Dalio completely exited the management of Bridgewater Associates in 2025, sold his stake, and left the board of directors.