Ray Dalio, founder of Bridgewater Associates, warned on October 6, 2026 that the artificial intelligence market is approaching a bursting point during an interview with Bloomberg Television. He compares the current situation to the 1929 crash and the 2000 dot-com bubble, citing hyperscalers’ increasing shift from equity to debt financing as borrowing costs rise and cash needs grow. US federal debt exceeded $40 trillion as of August 2026, and Dalio estimates a significant debt crisis could hit the financial system within the next three years. He identifies three unwinding signals: forced selling to raise cash, a surge in new stock supply, and rising retail leverage. While acknowledging AI’s transformative potential, Dalio questions whether current stock valuations reflect the actual economic productivity the technology will generate.
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