Ever-Bearish Grantham Insists AI Is a Bubble Waiting to Pop

Artificial intelligence is pushing humanity toward a more efficient future, but like any world-changing technology will eventually crash and hurt investors, according to longtime Wall Street doomsayer Jeremy Grantham.

The co-founder of Boston-based GMO, speaking in the latest Merryn Talks Money podcast, compared burgeoning AI technology to the 19th century expansion of the British railroads.

Jeremy Grantham

Photographer: Vanessa Leroy/Bloomberg

“Everyone lost their shirts. It was one of the most spectacular busts,” Grantham said. Heaps of money piled into a network that elevated GDP and productivity, but “every really important new technology has had a bubble around it,” he said.

Grantham, 86, ...