Bridgewater’s Jensen Says Hedge Fund Has “Very Small Position” in the AI Build Out Trade

Greg Jensen, the managing chief investment officer of Bridgewater Associates, one of the world’s largest hedge funds, said demand growth for AI infrastructure is largely priced into markets. As a result, Bridgewater has begun looking for investment opportunities elsewhere.

“We thought this was an incredible trade two years ago,” Jensen said in a wide-ranging interview with The Information. “A lot of it is now priced in,” he said, adding that Bridgewater has “a very small position on the AI build-out at this point and are much more interested in the disruption and adoption trades now.”

Jensen said Bridgewater has modeled the world’s data center builds and what that means for various supply chain components out to 2028, and is beginning its 2029 model. Any potential upside in demand growth for the “picks and shovels” of AI, typically chips and other infrastructure, also faces risks like financing challenges and construction delays, he said.

“We still think the market is probably underestimating a little bit what will be built in 2028, but it’s close, and that assumes no significant disruption,” he said.