Ray Dalio Warns AI Bubble Is Nearing a Bursting Point as Debt and Rates Rise

Billionaire investor Ray Dalio said artificial intelligence has become a "classic bubble" that is approaching a critical breaking point, driven by rising interest rates and mounting debt obligations among companies racing to capitalize on the technology boom. Speaking at the Forbes Global CEO Conference in Singapore, Dalio outlined a specific mechanism for potential collapse: massive debt accumulated by hyperscalers to fund AI infrastructure will become unsustainable as Treasury yields climb toward their highest levels since 2007.