Ray Dalio Warns AI Bubble May Burst Due to Liquidity Needs

Ray Dalio, founder of Bridgewater, predicts the AI bubble will burst not due to technological failure but because of liquidity demands, according to BeInCrypto. In a Bloomberg interview, Dalio emphasized that the need to convert paper wealth into cash will trigger the collapse. He highlighted the gap between wealth and money, noting that while AI firms can achieve high valuations, they lack the cash to back them. Dalio also pointed to government deficits and bond market stress as contributing factors. He advised investors to prepare for lower returns and cautioned against panic selling.