Ray Dalio, founder of Bridgewater Associates: The AI bubble is approaching its bursting point.

BlockBeats news, October 7 — Billionaire and Bridgewater founder Ray Dalio warned that artificial intelligence is a "classic bubble," and that with rising interest rates and the need to convert wealth into cash, the bubble is gradually approaching its breaking point.

Dalio said that a large amount of debt is currently being used to fund AI. As interest rates continue to climb, the bubble may begin to burst at this point. "We are at the stage in the cycle near this point, and I think we are already very close to it," he said.

He added that other factors could also trigger the bursting of the bubble, including wealth taxes and other measures aimed at converting unrealized gains into cash. "Everyone says, 'My net worth is $1 billion,' but the problem is that to spend that wealth, you have to sell assets for cash, and that is often exactly the trigger that causes bubbles to burst," he said.