Ray Dalio says a risky AI market bubble is forming, but may not pop until the Fed tightens

CNBC ^ | 10/28/2025 | Alex Harring

[millenial4freedom]

Bridgewater Associates founder Ray Dalio on Tuesday warned that a bubble could be forming around megacap technology in the U.S. amid the artificial intelligence boom, but said that it may not end until the Federal Reserve reverses its current easy policies.

“There’s a lot of bubble stuff going on,” Dalio told CNBC’s Sara Eisen in an exclusive interview from the Future Investment Institute in Riyadh, Saudi Arabia. “But bubbles don’t pop, really, until they are popped by tightness of monetary policy and so on.”

Added Dalio, “We’re going to be more likely to ease rates than to tighten rates.”

[millenial4freedom]

might as well join in for the ride while it lasts, but on the other side of this, there could be a lot of pleading from tech oligarchs for taxpayer subsidies for investments in AI that turn out to be fruitless

[Brian Griffin]

“there could be a lot of pleading from tech oligarchs for taxpayer subsidies for investments in AI that turn out to be fruitless”

The rich are often quite talented at getting richer.

There is no need for government AI investment outside of specific military applications.

[packrat35]

I’m still buying stock every week, along with physical silver.

[T.B. Yoits]

Money launderers use “overseas” corporations to buy such stock in order to borrow against it. The more it’s inflated, the better for them.