Ray Dalio, the billionaire founder of Bridgewater Associates, has warned that the market rally driven by artificial intelligence is showing signs of a bubble similar to those seen before the 1929 crash and the dot-com bust in 2000. Dalio made the comments during an appearance on The Diary of a CEO with Steven Bartlett. Bartlett referred to investor Jeremy Grantham’s warning that markets are facing "the biggest investment bubble in American history." Dalio agreed.
Dalio said the current market has many features seen during earlier speculative periods. Investor excitement around AI has pushed valuations higher, while companies linked to the theme are attracting large amounts of capital.
