Bridgewater Associates founder Ray Dalio says the artificial-intelligence market is approaching a point where rapid growth could give way to a sharp decline.
Speaking at the Forbes Global CEO Conference in Singapore, Dalio called the current surge a classic financial bubble. He said the industry’s leading companies are attracting huge amounts of capital while rising interest rates are making the market more vulnerable. Bloomberg reported his remarks.
Dalio also pointed to the risk of investors trying to turn paper gains into cash. A high valuation does not mean an owner can spend that amount. They must sell shares to realize the money, and widespread selling can put further pressure on prices.
International Monetary Fund Managing Director Kristalina Georgieva previously compared the scale of AI investment with spending on railways, power grids and telecommunications. She warned that disappointing financial results could sour opinion about the technology and trigger a global economic shock.