On Wednesday, Bridgewater Associates founder Ray Dalio said that speedy development in AI-driven valuations could be making a bubble similar to past technology booms, where paper wealth grew faster than real money.
AI Boom May Be Following Classic Bubble Pattern In a conversation with Bloomberg, Dalio said that major technological shifts often produce bubbles.
This is because investors struggle to put a price on innovation in an accurate manner.
He continued saying that companies often feel pressured to spend aggressively to gain more share of the market while investors put money in related stocks, resulting in higher valuations.
"All great technology changes produce bubbles," Dalio stated.
