Carlyle Group founder David Rubenstein doesn't believe in near-term AI stock bubble collapse

David Rubenstein, founder and co-chairman of investment firm Carlyle Group and host of the Bloomberg Wealth program, said he does not expect the bubble in artificial intelligence stocks to burst soon. He stated this on Bloomberg Surveillance, reports Bloomberg Tech.

Who is Rubenstein

David Rubenstein is one of the co-founders of Carlyle Group, one of the world's largest alternative asset management companies: it manages hundreds of billions of dollars in private equity, real estate, and credit funds. In addition to his investment career, Rubenstein hosts his own Bloomberg Wealth program, where he regularly comments on market conditions and shares forecasts with a wide audience of investors.

• Rubenstein is founder and co-chairman of Carlyle Group
• The statement was made on Bloomberg Surveillance
• He also hosts his own Bloomberg Wealth program

Why talk of an AI bubble doesn't fade

Over the past couple of years, shares of companies related to artificial intelligence — from chip makers to cloud giants and startups developing models — have grown significantly faster than most other market sectors. Some investors and analysts compare this to the dot-com bubble of the late 1990s and warn that capital spending on data centers and computing power may not pay off as quickly as current company valuations assume. Another camp, which Rubenstein appears to belong to based on his statements, believes that artificial intelligence is already generating real revenue and productivity, meaning high valuations are generally justified.

What this means

The dispute about whether the current growth of AI stocks is a bubble remains unresolved: major figures in the financial world disagree, and the market continues to price in further rapid growth in revenue and capital spending for AI companies.