Bridgewater Associates founder Ray Dalio warns: The AI market shows signs of a bubble, and profitability is the key to its collapse

According to Bloomberg, Bridgewater Associates founder and billionaire investment master Ray Dalio issued a stern warning today (the 3rd), pointing out that the artificial intelligence (AI) market has already shown signs of a bubble and predicting that the bubble will eventually burst. Dalio emphasized that companies are currently caught in a dilemma of "overinvestment" and "missed market share," and that the future real profitability of AI infrastructure will be a key factor in determining when the bubble will break.

(Background summary: Bridgewater's Ray Dalio warns: Three major orders collapse, the US is entering a long-term downturn phase)
(Additional background: Bridgewater's Dalio: The US is about to have a heart attack, "Three major orders fully collapse," Iran war may end dollar hegemony)

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• Companies caught in investment dilemmas, profit realization becomes a ticking time bomb
• Chip stocks repeatedly hit new highs, Jensen Huang has publicly expressed confidence
• Dalio has fully exited Bridgewater, net worth still exceeds $20 billion

As the AI boom drives related tech stocks to new highs repeatedly, Wall Street's concerns about an "AI bubble" are also intensifying. One of the world's largest hedge funds, Bridgewater Associates, founded by Ray Dalio, in an exclusive interview with Bloomberg Television on June 3, 2026, issued a candid warning about the current AI frenzy, believing that the market has already shown signs of a bubble and is ultimately destined to burst.

Companies caught in investment dilemmas, profit realization becomes a ticking time bomb

Dalio explained in the interview that throughout history, all major technological revolutions have been accompanied by bubbles in the capital markets. He pointed out sharply that current tech and startup companies are facing a highly difficult strategic choice: either to invest heavily in AI at all costs to gain market share, ignoring the risks of overspending; or to adopt a conservative approach, but at the cost of losing significant market share.

Regarding when this bubble might be punctured, Dalio further stated that bubbles usually burst when investors "need to realize profits from their investments." He specifically highlighted that the "substantial profitability" of AI infrastructure and related companies is one of the biggest concerns in the market right now. If these hundreds of billions of dollars in capital expenditures ultimately fail to translate into corresponding business financial returns, a sharp market correction will be unavoidable.

Chip stocks repeatedly hit new highs, Jensen Huang has publicly expressed confidence

The report pointed out that, benefiting from the huge demand for high-bandwidth chips in AI data centers, chip manufacturers have been among the strongest performers on Wall Street recently. This AI-driven frenzy has not only pushed the overall market to historic highs but also sparked intense debate among institutional investors about whether the market is entering an overheated phase.

In response to rising bubble concerns, NVIDIA CEO Jensen Huang recently appeared to ease related doubts. He emphasized that investors supporting this wave of AI infrastructure investment have already gained strong financial returns, demonstrating that the industry's growth still has solid performance support.

Dalio has fully exited Bridgewater, net worth still exceeds $20 billion

The 76-year-old Ray Dalio is a highly respected macroeconomic investment master worldwide. According to the latest Bloomberg Billionaires Index, his net worth is approximately $21.5 billion.

Dalio officially and completely exited the hedge fund he founded in 2025, selling all remaining holdings and fully leaving the company's board. Despite stepping back from the spotlight, his keen sense of global macroeconomics and calm observation of emerging tech trends still hold significant influence over Wall Street, the crypto market, and investors at large. In the face of the frenzy surrounding AI, his warnings undoubtedly serve as a wake-up call to the market.