(HedgeCo.Net) Bridgewater Associates, the world’s largest hedge fund, stunned markets today by issuing a stark warning about the boom in AI investment financed by external capital, calling the trend “dangerous.” Reuters

In a public commentary, Co-CIO Greg Jensen cited UBS data showing capital flows into AI infrastructure had jumped sharply — from roughly $15 billion in 2024 to $125 billion in 2025 — sparking concerns that spending levels may be outpacing sustainable revenue growth. Reuters

Bridgewater’s position reflects deeper macro uncertainty:

• Rising leverage and concentrated allocations to tech and growth assets could spill over into broad alternative portfolios.
• Hedge funds and private credit vehicles with strong AI exposure may face abrupt repricing if earnings forecasts cool. Reuters

Investor takeaways:
Risk managers see this comment as part of a larger narrative about macro caution alongside strong hedge fund performance in 2025, where many multi-strategy funds generated more than 13 % returns through October. Reuters

Strategic Insight: Alternative firms may increasingly blend macro hedges into concentrated thematic exposures — especially where tech and AI capital flows intersect with private credit.