Robert Kiyosaki Warns AI Bubble May Be Bigger Than Dot-Com

Concerns about an artificial intelligence (AI)-driven market bubble are resurfacing as investor enthusiasm around AI stocks reaches extreme levels.

In an X post shared on December 24, ‘Rich Dad Poor Dad’ author Robert Kiyosaki highlighted warnings attributed to Warren Buffett, pointing to AI, surging global debt, and stretched equity valuations as some of the biggest threats facing investors today.

Kiyosaki emphasized that the potential fallout from an AI bubble could be even larger than the dot-com crash, a comparison that has begun circulating more frequently among veteran market observers. 

While AI is undeniably transformative, the concern is not the technology itself, but how aggressively markets have priced in future growth. Despite disagreeing with Buffett regarding his stance on Bitcoin (BTC), the finance author pointed out:

“Like it or not…. We live in dangerous times, and it is best we listen to a great man of wisdom … for guidance into the future.”

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Why The AI Boom Is Raising Red Flags

AI-related stocks have seen explosive gains as investors race to gain exposure to anything tied to AI, from chipmakers to software platforms. In many cases, valuations have expanded far faster than underlying revenues or profits, creating conditions reminiscent of previous speculative cycles.

Historically, bubbles form when revolutionary technology narratives collide with excessive leverage, optimistic forecasts, and herd behavior. The dot-com era followed a similar path of genuine innovation paired with unrealistic expectations. When sentiment shifted, even strong companies suffered deep drawdowns.

Kiyosaki’s warning echoes a broader concern that today’s AI enthusiasm may be masking systemic risks, especially in an environment already burdened by record global debt and tightening financial conditions.

What This Means For Investors

If AI optimism cools, markets could face a sharp repricing as capital rotates away from high-growth, high-multiple assets. That doesn’t mean AI is a dead end, only that timing and valuation matter. Past cycles show that transformational technologies often survive, while speculative excess does not.

Kiyosaki’s message ultimately serves as a reminder that even in eras of groundbreaking innovation, risk management remains essential. As AI continues to reshape industries, investors may want to separate long-term potential from short-term hype before the bubble narrative becomes reality.

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