Billionaire Ray Dalio cautioned investors in a recent podcast interview with Tucker Carlson saying that the development of artificial intelligence could risk totalitarian social control or even anarchy in the coming years.

Highlighting the unpredictability in the direction of AI's growth, Dalio anticipated a radically different world over the next five years.

What Happened: Dalio recently appeared on a podcast with Carlson on the latter's YouTube channel discussing the trends in the U.S. economy, debt crisis, stock market, and AI.

Discussing the various possibilities of using AI at a "molecular level," from solving medical issues to problems like inflation within an economy, Dalio said that AI was a "two-edged sword". The future could be shaped depending on who has access to and control of such AI tools, he said.

When asked if there was a way to avoid totalitarian social control through AI, Dalio said, "I think there’s a question of whether you can have social and totalitarian controls or maybe you just have anarchy."

Dalio believes that humanity will undergo an AI technology-induced "time warp," which will radically change the world in the next five years. He also added that quantum computing will be another innovation to look at.

"So the world five years from now is going to be a radically different world. And I don’t know what that’s going to look like when you go into the world of quantum computing and what quantum is like in so many different ways. It raises questions of, you know, what is that like?" said Dalio.

See Also: Mark Cuban Calls Deductibles ‘The Biggest Problem’ in Healthcare: ‘System…Needs To Be Redesigned’

Why It Matters: Microsoft Corp. MSFT launched ‘Majorana 1,' last week which is one of its kind quantum computing chip operating in a topological phase of matter. While Satya Nadella termed it a "physics breakthrough," he added that the launch of this chip could shorten the timeline of a possible quantum computing breakthrough.

Similarly, with DeepSeek's emergence, the competition in the AI industry has also intensified. Here is a list of AI and quantum computing-linked exchange-traded funds that investors could consider over the long term.

ETF NameYTD PerformnaceOne Year Performance
iShares US Technology ETF IYW7.55%0.90%
Fidelity MSCI Information Technology Index ETF FTEC-2.57%17.89%
First Trust Dow Jones Internet Index Fund FDN0.80%22.78%
iShares Expanded Tech Sector ETF IGM-1.14%20.91%
iShares Global Tech ETF IXN-0.66%14.81%
Defiance Quantum ETF QTUM-1.93%37.08%

Price Action: The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. SPY was up 0.45% to $596.94, and QQQ advanced 0.75% to $517.16, according to Benzinga Pro data.

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