Ray Dalio said AI is a “classic bubble,” warning that large amounts of debt are
being used to fund AI and that rising interest rates could push the bubble
toward a break point. He said the bubble could begin to burst as rates climb and
wealth is forced into cash, with potential triggers including wealth taxes and
measures that convert unrealized gains into cash — actions that often
precipitate asset sell-offs. "We're in the cycle approaching that point; I think
we're pretty close," he added.
