Ray Dalio: AI Bubble Faces a $2 Trillion "Reality Check"

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CoinWorld News reports that billionaire investor Ray Dalio warned in an interview with Bloomberg TV that an AI bubble is forming. Even so, Dalio noted that every great technological shift creates a bubble, and AI is no exception. He believes companies currently face the risk of overspending or losing opportunities due to underinvestment. Dalio said that while AI will change the world, he does not hold an optimistic view of returns on investments in related companies. He stated that when the bubble bursts, paper money must be converted into real money. Many experts warn that we may be entering a dangerous realm of AI. Renowned trader Michael Burry also believes the current situation is in a bubble and said it is very similar to the internet bubble of the 1990s. The Bank for International Settlements (BIS) also said that if the AI hype fades, the global financial order will face risks. The BIS pointed out that debt-driven AI data center spending, unclear financing, and private credit risks could cause major concerns for larger economies when a crash occurs.
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RugcheckRoommate
· 3h ago
Now the PE for investing in AI is even crazier than the internet era, but what about the cash flow?
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GoldfishUnderTheIce
· 7h ago
Technological revolutions inevitably come with bubbles; the key is how much the few that survive are ultimately worth.
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SandwichDodger
· 7h ago
Burry is speaking again. How did the market move after he called a bubble last time?
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AirdropOrganizer
· 7h ago
Dalio is basically repeating old arguments, but AI's cash-burning rate is truly outrageous. Wait for earnings season to see who's swimming naked.
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GateUser-470bc925
· 7h ago
BIS has entered the fray, indicating that institutional positions are too heavy, and we are really afraid of a stampede.
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