Dalio Sees AI Bubble Bursting as Wealth Is Converted Into Money

Billionaire investor Ray Dalio said the booming artificial-intelligence market shows signs of a bubble that will eventually burst.

“All great technology changes produce bubbles,” Dalio, the founder of Bridgewater Associates, said Wednesday in a Bloomberg Television interview. “Nobody can get it exactly right. You have to either spend a ton of money to capture your market share and don’t worry about whether it’s too much or not, or you don’t spend enough money and you lose your market share.”

Chipmakers have been the hottest stocks on Wall Street, driven by demand for high-bandwidth chips used in AI data centers ...