Spending on artificial intelligence by major corporations is set to grow exponentially and could fundamentally reshape the global economy, according to co-chief investment officers at Bridgewater Associates. In a client note released Monday, the CIOs said AI has become the dominant driver of corporate investment and a key force behind recent market rallies.
The surge spans the entire AI supply chain, from data centers and advanced chips to power generation, lifting equity markets despite rising concerns about sustainability and bubble risks. Bridgewater’s Bob Prince, Greg Jensen and Karen Karniol-Tambour argued that competitive pressure makes it unacceptable for companies to fall behind rivals by even a few months, forcing aggressive capital expenditure decisions across industries.
They warned that soaring AI investment could fuel inflation as demand drives up prices for chips, electricity and infrastructure, while also increasing financial risks. Easy monetary policy could further accelerate speculative activity, intensifying deal-making and raising the likelihood of bubble-like conditions, the CIOs said.
