Ray Dalio Warns AI Bubble Is Bursting as Wealth Converts to Money — Likens Current Boom to Dot-Com Era

Bridgewater founder Ray Dalio told Bloomberg June 3 that the AI industry is showing classic bubble characteristics — excessive speculation and lofty valuations resembling the dot-com era of 2000 — and warned that wealth is now being 'converted into money' as the bubble deflates. Dalio cautioned that a collapse would not negate AI's long-term technological value, advising investors to watch for Federal Reserve monetary tightening as the key catalyst for a sharper correction. The warning arrives as SpaceX's IPO roadshow begins at a $1.75 trillion valuation that Morningstar simultaneously pegged at less than half that figure.