Dalio attributed the sector's vulnerability to rising interest rates, which increase pressure on investors to liquidate holdings. He warned that these macroeconomic shifts make the existing AI-driven market expansion susceptible to a sharp correction.
Tuesday, October 20, 2026
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Ray Dalio Warns AI Bubble Nears Bursting Point
US Markets14 days ago
Investors' urgent need to convert assets into liquid cash is destabilizing the artificial intelligence sector, according to Bridgewater Associates founder Ray Dalio. The billionaire described the current surge in AI investments as a "classic bubble" that is approaching a breaking point.
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