Source: Jinshi Data
Amid the capital frenzy driven by artificial intelligence, Bridgewater Associates founder Ray Dalio warned of market risks, arguing that the current situation exhibits typical bubble characteristics and expects this phase to eventually end.
In a Bloomberg Television interview on Wednesday, Dalio pointed out that technological waves are often accompanied by an over-influx of capital . "All great technological changes create bubbles," he said, while emphasizing that it is difficult for investors to accurately gauge the scale of investment, and that companies either invest heavily to seize market share or lose their competitive position due to insufficient investment.
This assessment comes against the backdrop of a significant surge in AI-related assets. Driven by demand for data center construction, particularly the soaring demand for high-bandwidth chips, chip companies have become the core targets of Wall Street funds, propelling the overall market to new highs. Alongside this surge, there is also intense debate within the market about whether valuations have become overheated.
Nvidia CEO Jensen Huang recently expressed a different stance. In a speech this week, he stated that investors willing to jump on the AI bandwagon will reap "crazy" returns .
In his speech the previous day, he also responded to questions about the valuation, addressing concerns that the huge investments in data centers would not yield returns. He said, "Remember when we got together last year, all the talk and narratives surrounding this investment were asking: What is the return on investment (ROI)?" He then countered, "Give me an example now, and see which lunatic is still saying that. They would sound like they're crazy."
In contrast, Dalio is more concerned about the risks during the profit realization phase . He believes that once the market enters a stage where investment needs to be converted into actual returns, bubbles often show signs of bursting . "The process of bursting a bubble is actually the process of converting paper wealth into cash," he said, expressing concern about the future profitability of some AI companies. While acknowledging the significant value of AI itself, he also bluntly stated that the current market trend is "repeating this mistake."
Ray Dalio, 76, is the founder of Bridgewater Associates, one of the world's largest hedge funds. He completed his full exit from the company in 2025, including selling all remaining shares and resigning from the board. According to the Bloomberg Billionaires Index, his personal net worth is approximately $21.5 billion.
