Carlyle Group founder David Rubenstein doesn't expect the AI stock bubble to burst anytime soon

David Rubenstein, founder and co-chairman of investment firm Carlyle Group and host of Bloomberg Wealth, said he doesn't expect the bubble in AI-related stocks to burst anytime soon. He made the remarks on Bloomberg Surveillance, Bloomberg Tech reports.

Who is Rubenstein

David Rubenstein is one of the co-founders of Carlyle Group, one of the world's largest alternative asset managers, with hundreds of billions of dollars under management across private equity, real estate, and credit funds. Beyond his investment career, Rubenstein hosts his own show, Bloomberg Wealth, where he regularly comments on the state of the markets and shares his forecasts with a broad audience of investors.

• Rubenstein is the founder and co-chairman of Carlyle Group
• He made the statement on Bloomberg Surveillance
• He also hosts his own show, Bloomberg Wealth

Why the AI bubble debate won't die down

Over the past couple of years, shares of AI-related companies — from chipmakers to cloud giants to model-building startups — have grown much faster than most other sectors of the market. Some investors and analysts compare the situation to the dot-com bubble of the late 1990s and warn that capital spending on data centers and compute may not pay off as quickly as current valuations assume. The other camp, which Rubenstein appears to belong to based on his comments, argues that AI already delivers real revenue and productivity gains, so high valuations are broadly justified.

What it means

The debate over whether the current rally in AI stocks is a bubble remains unresolved: major figures in finance disagree, while the market continues to price in further rapid growth in AI companies' revenue and capital spending.