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Wall Street’s AI ‘bubble’ echoes dotcom excesses, Ray Dalio warns

Wall Streets AI %E2%80%98bubble echoes dotcom excesses Ray Dalio warns Wall Streets AI %E2%80%98bubble echoes dotcom excesses Ray Dalio warns

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The billionaire investor has warned that the abundance of the investor on artificial intelligence has fed a “bubble” in the shares of the United States, which is similar to the accumulation of a bust in its session at the beginning of the millennium.

“The prices have reached high levels at the same time that there are the risk of interest rate, and that this mixture can mess the bubble.”

Warning from Dalio, Fund Bridgewateer Associats, and one of the best prominent figures in Wall Street, comes as concerns about whether stocks in the United States in the United States have gone away. Investors are also worried about the high borrowing costs and anxiety that sharpened after federal reserve officials in December reduced their expectations for price discounts this year.

Dalio said: “Where are we in the course now very similar to where we were between 1998 or 1999.” “In other words, there is a new new technology that will definitely change the world and will be successful. But some people confuse that with the success of investments.”

The late 1990s witnessed an increase in technical assessments, which partially works by lower interest rates and the increasing Internet adoption of the Internet, followed by the correction of the brutal that came in Alan Greenban’s monetary policy.

The NASDAQ 100 technology index doubled in 1999, where about 80 percent decreased by October 2002. The index has doubled since the beginning of 2023, as stocks such as the chip maker focusing on AI rose up.

The shares of Wall Street fell on Monday after Deepseek, a Chinese company of artificial intelligence linked to an unknown hedge box, published a paper claiming its latest competitors from Openai and Meta platforms in performance, but at a lower cost and with less developed devices. Nafidia threw nearly $ 600 billion in market value on Monday.

Deepseek’s clear success calls for questioning possible returns on hundreds of billions of dollars invested by Silicon Valley companies in artificial intelligence data centers, and whether China has succeeded.

Openai, with the support of Microsoft last week, announced a plan to invest up to $ 500 billion in Amnesty International’s infrastructure. The company’s ChatGPT was the free Apple classification to Apple store until it was displaced on Monday by AI’s assistant in Deepseek.

Dalio, who retired as President of Bridgroter in 2021 but still on the board of directors, has long called on economic participation with China. Last year, he wrote that “the main question is not whether I should invest in China as much as it is.” He warned, however, that the risks in artificial intelligence are unusually high.

“The technical war between China and the United States is much more important than profitability, not only for economic excellence, but for military excellence,” FT told FT.

“Those who will pay attention to profitability with sharp pencils will not win this race,” Dalio added.

The Openai founder, the founder of Openai, the Openai, sam altman on X this month, is strengthening the company losing money on the Chatgpt Pro plan, which costs $ 200 a month due to heavy use unexpectedly.

With American technology groups invested extravagance, President Donald Trump pledged to support American artificial intelligence in his second term.

China has provided financial assistance to the artificial intelligence industry, including launching money created to support the semiconductor industry. Meanwhile, during the era of former President Joe Biden, the United States extended billions of support for groups to build chips on American soil.

Dalio admitted that the state’s support for artificial intelligence developers is inevitable, given the importance of winning the global race, even if it came at the expense of profit.

“In our system, to a large extent, we move on to a kind of industrial policy that will be active from the government and affected by the government, because it is very important.”

“Capitalism alone – the profit motivated alone – cannot win this battle.”

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2025-01-28 05:01:00


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