“The AI bubble is a bigger story than railroads. It's a bigger story than the internet. It's a bigger story than crypto was. It's the biggest story of our lifetime. And therefore, it will be the biggest bubble of our lifetime. And because of this idea of an infinite learning machine, which creates in some ways an infinite ROI, there's almost no price you're willing to not risk to be part of that.”
Money Rehab with Nicole Lapin · October 2026
Novogratz says he agrees with Ray Dalio's big-picture case for a crash, but that the timing is off. Bubbles form around stories that change everything, as the internet did, and he argues AI is the biggest such story yet.
Transcript
…250. So you basically are either giving all your liquidity away and having no cushion or you're selling much assets. But a wealth tax by definition forces selling. And so once you start that process and fear of wealth tax, there's more selling pressure. I think that's what Ray's argument would be.
Yeah, apocalyptic, like E-P-O-C-A-H, right? Like different eras.
…of the internet bubble, we didn't date over the internet. We didn't watch movies on the internet. We did nothing on the internet. We talked about it, but it hadn't had any impact on our lives. We didn't get the iPhone until I think 2006 or 7 or 5. We were right in that same zone. Yet we peaked and we didn't go back to the same high in the NASDAQ for 16 years. The railroad bubble is the same way. The AI bubble is a bigger story than railroads. It's a bigger story than the internet. It's a bigger story than crypto was. It's the biggest story of our lifetime. And therefore, it will be the biggest bubble of our lifetime. And because of this idea of an infinite learning machine, which creates in some ways an infinite ROI, there's almost no price you're willing to not risk to be part of that. And there's enough new information weekly that feeds that narrative. I mean, I downloaded Muse, and I was so mad that I'm running this company because as the CEO of a public company, you really can't let Muse had to do it on a non-work phone and on just on a tiny bit of my life. You can't let it into your life because there's all kinds of security protocols. Well, do you
think security companies are going to be a big winner? Oh,
a huge winner. I mean, just a non-stop winner. But all you think about using Muse is this is the first commercial app that's going to turn people positive on the AI story. And this day one, I mean, I was using them all. We can do this and make me a reservation. You know, it's really good. And it's…
So we're going to have a bubble.
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