Investor Ray Dalio says artificial intelligence is approaching a “classic bubble” that could burst soon. Speaking at the Forbes Global CEO Conference in Singapore, the Bridgewater founder links the risk to financial conditions that make leveraged bets harder to sustain.
Across outlets, Dalio’s concern centers on the growing concentration of market gains in a small number of technology stocks and the fact that much AI investment is financed with debt. He argues that rising interest rates and higher bond yields increase the cost of funding AI infrastructure, while investors may face pressure to convert paper wealth into cash. That dynamic, he says, can strain highly valued assets and contribute to a pullback.
Some reports also broaden the warning beyond rates, noting that other catalysts could include policies such as wealth taxes and efforts that push holders to realize gains. While Dalio frames the situation as “close” and “approaching,” he characterizes the downturn as part of a cycle rather than an immediate certainty.
