Wall Street’s AI ‘bubble’ echoes dotcom excesses, Ray Dalio warns
Stay informed with free updates
Just sign up to Technological sector MYFT DIGEST – Shipped directly to your inbox.
The magnitude of investors against artificial intelligence was initiated in the US shares, which remind the construction of the Millennium Turn, apartment, billionaire investor Ray Dalio.
Dalio: Financial Times said that “pricing reached the levels, which are at the same time high, as there is a risk of interest, and that combination can blow bubble.”
The warning is one of the highest profiling figures of the founder of Hed Street and Wall Street, as worrying, whether the United States shares went too far. Investors are also concerned about the high cost of increasing the loan, the sharpened concerns after the federal reserves in December, which cut their expectations for the exchange rate this year.
“Where we are in the cycle is now, it’s very similar to where we have been to where we have been from 1998 to 1998,” Dalio said. “In other words, there is a major new technology, which, of course, will change the world and it will be successful. But some people confuse that investments are successful. “
The last of the 1990s passed run technical Assessments that are partially fed up with a low interest rate and the growing internet adoption, followed by a brutal correction, which came as Alan Georgia’s feed tightened monetary policy.
Tech-Heavy NASDAQ 100 index doubled in 1999, until 2002. In October, the figure doubled from the beginning of 2023.
Street reserves covered after a deep street on Monday Chinese company AI Related to a bit of a slightly popular stock, published a piece of paper that claims its latest AI model, which represents the items in Openai and Meta Platforms, but at a lower price and less complex hardware. NVIDIA has shed about $ 600 billion on Monday value.
The obvious success of Deepseek puts hundreds of billions of dollars of Silicon Valley in the data centers of PSC, and is China managed to find it, despite its ability to import high-quality chips from the United States to a number.
Saturday by Apenai, Microsoft, stated a Plan to invest Up to $ 500 billion in the AI infrastructure. The company’s ChatGPT was the highest rated Apple App Store program until it was moved by Deepseek’s AI Assistant Monday.
Dalio, who retired in 2021 as the President of Bridgewater, remains on the board, has long defensive economic involvement with China. He wrote last year that “isn’t the main question, should I invest as much as?” He warned that the stakes in AI are unusually high.
“The technological war between China and the United States is much more important than profitability, not only for economic priority, but also for military priority,” he said.
“Those who are going to pay attention to the profitability with sharp pencils are not going to win that race,” Dali added.
In this month, he wrote in X’s profit composition of OPENAI HAM ALTMAN.
As American technology groups have promised to support the American AI in its second term.
China has offered financial assistance to its AI industry, including the launch of funds created to support its support semiconductor industry. Meanwhile, former US President Joe Biden has distributed billions of dollars to groups to build chips on American land.
Dalio lost to the state support of AI’s obedience inevitably gave the importance of winning the world race, even if it came to the account.
“In our system, and large, we are moving to more industrial-complicated. The type of policy in which there is an act affected by the government, as it is so important. “
“Capitalism alone. Only the motivation of profit cannot be won in this battle. “
English