Ray Dalio Warns About AI Bubble and the Difference Between Wealth and Money

Ray Dalio warns that the enthusiasm for artificial intelligence on Wall Street shows signs of a bubble, similar to those of 1929 and the dot-com bubble. The founder of Bridgewater Associates points out that the problem is not the technology itself, but rather the behavior of investors and the high valuations of many companies in the sector. In the podcast "The Diary of a CEO," Dalio stated that all major technological changes generate bubbles, recalling that transformative advancements have also led to excesses in the markets. Despite his warning, he maintains a positive outlook on the potential of artificial intelligence, which will profoundly impact productivity and the global economy. However, he cautions that not all companies in the sector are good investment opportunities. Dalio emphasizes that many investors confuse the increase in asset value with the creation of real money, which can create a false sense of wealth. When expectations exceed the ability of companies to generate profits, valuations can disconnect from their fundamentals, potentially leading to corrections in companies with revolutionary technologies. His statements add to a debate about the sustainability of the rally driven by artificial intelligence, as voices grow warning about the risk that enthusiasm has pushed valuations too far. Dalio concludes that it is crucial to differentiate the potential of an innovation from market expectations.