AI spending frenzy could reshape the economy, Bridgewater CIOs say

Reuters
2026.01.26 16:22
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Bridgewater Associates' co-CIOs predict that corporate spending on artificial intelligence will continue to grow exponentially, reshaping the economy and driving market rallies. They note that this surge in AI investment could lead to inflation and create bubble-like conditions in the market. Despite concerns over a potential AI stock bubble, Wall Street's main indexes ended 2025 with double-digit gains, driven by strong demand for AI-linked stocks. The dynamics of increased AI capital spending may heighten risks and speculative activity in the equity market.