AI bubble debate: Dalio warns of burst, Novogratz says it's still early
AI summary
Speaking at the Greenwich Economic Forum and in Singapore, Galaxy Digital founder Mike Novogratz called AI "the biggest bubble in our lifetime" while still urging investors to buy in now; Bridgewater founder Ray Dalio countered that it is a "classic bubble" near its breaking point, citing rising rates and AI firms shifting from equity to debt financing. "Black Swan" author Nassim Taleb argued the real fault line is in the bond market. Goldman Sachs data cited in the piece puts AI-related stocks at 42% of S&P 500 market value, above the 41% peak of the 1999 tech bubble.
In-depth insight
The debate shapes how investors judge the sustainability of AI infrastructure capex and the financing conditions of AI firms increasingly reliant on debt.