①Greg Jensen, Co-Chief Investment Officer of Bridgewater Associates, refuted the notion of an artificial intelligence (AI) bubble. He stated that investors supporting the bubble theory do not truly understand the immense potential of AI; ②although some business leaders and investors—such as Bill Gates and Michael Burry—have compared the AI boom to the dot-com bubble, Jensen believes the world has not even entered the speculative phase yet.
On Wednesday local time (November 26), Greg Jensen, Co-Chief Investment Officer of Bridgewater Associates, refuted the notion of an artificial intelligence (AI) bubble during a podcast appearance.
He noted that the market still fails to comprehend how profound the transformation brought by AI will be and does not realize how much capital is about to flow into this sector.
“The bubble lies ahead, not behind,” Jensen remarked.
Although some business leaders and investors—such as Bill Gates and Michael Burry—have likened the AI boom to the dot-com bubble, Jensen argued that the world has not yet entered the speculative stage.
He stated that we are still in the phase where “people have no idea what will hit them.” Most investors have yet to grasp how AI will fundamentally reshape markets, geopolitics, and economic growth.
Tech Leaders Believe AI Pertains to Human Survival
Jensen pointed out that one reason this cycle differs from previous tech frenzies is that major figures in the AI field, including Elon Musk and OpenAI CEO Sam Altman, believe this transformation pertains to human survival.
“They believe that the power to control the Earth, or even the universe, could be achieved within just a few years,” Jensen added. “They are not driven by the normal profit motive seen in traditional cycles.”
This mindset implies that capital expenditures will not slow down due to high valuations or rising financing costs, as long as technological advancement requires investment. “This money will be spent regardless,” he said.
This has triggered what Jensen calls the 'resource scramble phase,' something the technology industry has never seen before.
Competition for electricity, data center land, and advanced chips is already creating bottlenecks. Meanwhile, a talent shortage represents another bottleneck.
Jensen estimates that there are fewer than a thousand people globally who can be considered truly cutting-edge AI scientists, and the fierce competition for them is slowing down research progress.
The resource scramble has distorted markets.
As AI's influence on markets continues to grow, Jensen points out that investors remain overly focused on current winners.
He noted that if large AI stocks were excluded, the U.S. stock market’s performance would actually lag behind the rest of the world—indicating that this sector is masking deeper economic shifts.
Meanwhile, the scale of AI-related capital expenditure has grown large enough to impact macroeconomic indicators. Jensen estimates that approximately one percentage point of U.S. GDP growth this year comes from AI investment.
He emphasized that all of this is just the beginning.
Jensen warned that the world is entering a 'more dangerous phase' of the AI cycle—characterized by resource scarcity, accelerating spending, and intensifying competition—and investors are not yet prepared for the changes ahead.
Editor/Doris
