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The investor over artificial intelligence has encouraged “bubble” in American stocks that resemble a dotcom at the turn of the millennium, warned billionaire investor Ray Dalio.
Given He said the Financial Times that “high -level prices have become at the same time when there is a risk of interest rates and that the combination could kill a bubble.”
The Dalio warning, the founder of the Hedge Fund Bridgewater Associates and one of the highest figures on Wall Street, comes as an concern to whether the boom in US AI shares went too far. Investors also remain concerned about the elevated borrowing costs, the concerns that have sharpened after the December official officials have reduced their expectations to reduce the rate this year.
“Where we are currently in the cycle is very similar to where we were between 1998 or 1999,” Dalio said. “In other words, there is a great new technology that will surely change the world and be successful. But some people confuse it with successful investments. “
In the late 1990s they saw each other on the move technician Assesses, partially, which are partly launched by low interest rates and growing internet adoption, followed by a brutal correction that came as Alan Greenspan’s Fed tightened monetary policy.
The Nasdaq 100 Technology Index was doubled in 1999, only to fall about 80 percent by October 2002. The index has doubled since the beginning of 2023, as shares like Chip-Chip-Chip-Chip Nvidia increased.
Wall Street stocks are lowered on Monday after Deepseek and Chinese company AI Related to the little -known Hedge Fund, he has published a paper that claims that his latest AI model is the rivals of those of the Openi and Meta platform in performance, but with lower costs of less sophisticated hardware. Nvidia dropped nearly $ 600 billion in market value on Monday.
The apparent success of Deepseek calls into question the potential yields on hundreds of billions of dollars invested by Silicon Valley companies in AS data centers and whether China has managed to find a way to compete despite the limitations of his high ranking ability from the US.
Openii, supported by Microsoft, last week announced a Plan to invest up to $ 500 billion in AI infrastructure. The Chatgpt Company was the best rated free app at the Apple App Store until it was displaced on Monday by Deepseek’s AI assistant.
Dalio, who withdrew as a Bridgewater chairman in 2021 but remained on the committee, has long advocated an economic engagement with China. He wrote last year This “key question is not if I should invest as much in the cinema as”. He warned, however, that the roles in the AI were unusually high.
“The technological war between China and the US is far more important than profitability, not only because of economic superiority, but also because of military superiority,” he told FT.
“Those who will pay attention to profitability with sharp pencils will not win that race,” Dalio added.
Increasing the insolence of AI profit, OPENAI founder Sam Altman wrote this month on X that the company was losing money on its Chatgpt Pro plan in the amount of $ 200 per month due to unexpectedly major use.
As US technological groups are lavishly investing, President Donald Trump has committed to supporting American AI in his second term.
China offered financial assistance for its AI industry, including the launch of funds established to support its semiconductor industry. In the meantime, the United States, under former President Joe Biden, have extended billions of dollars of subsidies for groups to build chips on US soil.
He admitted that the state support for Jockeying AI developers was inevitable given the importance of winning the global race, even if it came to the detriment of profits.
“In our system, mostly, we move on to more industrial complex of policy in which there will be an activity under the influence of the Government and under the influence of the Government, because it is so important.”
“Capitalism itself – the very motive of profit – cannot win this battle.”
