Ray Dalio Warns AI Bubble Will Eventually Burst

BlockBeats News, June 3rd, Ray Dalio, the founder of Bridgewater Associates, stated today in a Bloomberg TV interview that the artificial intelligence (AI) bubble will eventually burst.

Ray Dalio has previously stated multiple times that the current AI frenzy is in the early stages of a bubble or in the process of forming, exhibiting typical bubble characteristics: high valuations, excessive speculation, paper wealth far exceeding real currency, and other signs similar to the 2000 Internet bubble. However, Dalio also emphasized that even if the bubble bursts, it will not negate the long-term revolutionary value of AI technology—most AI-related companies may struggle to survive, but the underlying technology will continue to change the world. He advised investors not to rush to exit, but to be vigilant of trigger factors such as the Federal Reserve tightening monetary policy that could "pop the bubble" and to remain cautious while maintaining a diversified portfolio.