Ray Dalio warns AI hype may be a financial bubble
Business
Ray Dalio, a billionaire investor, thinks the current AI hype might be heading toward a financial bubble, kind of like what happened during the 1929 crash and the dot-com bust in 2000.
He told Bloomberg that investors sometimes get carried away, mixing up future promise with what's actually happening right now.
Dalio says AI spending outpaces profits
Dalio sees huge spending on chips and cloud tech, but says many companies aren't making real profits from AI yet.
He also points out risks with relying on global semiconductor supply chains.
In his view, the real winners will be those who use AI to boost productivity and build solid businesses — not just chase sky-high valuations.