Legendary Hedge Fund Investor Ray Dalio Warns the AI Bubble Could Burst

The Bridgewater founder says today’s AI frenzy is beginning to resemble the speculative booms that preceded the crashes of 1929 and 2000.

BY SAM BLUM, SENIOR WRITER @SAMMBLUM

Ray Dalio. Illustration: Inc; Photo: Adobe Stock, Getty Images

Ray Dalio, the famed investor and CEO of Bridgewater Associates, joined the chorus of Wall Street analysts voicing concerns about the AI bubble’s impending collapse. The 76-year-old hedge fund magnate made the comments on the Diary of a CEO podcast last week, comparing the AI goldrush to the economic calamities of 1929 and 2000. 

“What they call a bubble is when the price goes up a lot and companies do very well and then it collapses. And that has implications for the economy and implications for the markets,” Dalio said.

What Dalio is talking about, albeit in generalized terms, has been happening........

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