Open Source · Anthropic · OpenAI · Wall Street · Decrypt
Ken Griffin Says AI Is 'Almost Certainly' in a Bubble—And Compares GPUs to Airline Seats
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Ken Griffin, founder of the Wall Street giant Citadel, said Tuesday that investors are “almost certainly” in an AI bubble—though he isn’t telling them to dump their AI stocks.
Key facts
- On July 30, Situational Awareness, a hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, sold most of its public stock portfolio to Citadel at roughly a 10% discount after its value
- Wall Street analysts expect growth in capital spending, the money poured into chips and data centers, by the largest AI infrastructure builders to slow from 75% in the third quarter of 2025 to 25%
- Gartner forecasts worldwide AI spending at nearly $1.5 trillion for 2025, counting everything from chips and servers to AI-enabled phones
- Ken Griffin, founder of the Wall Street giant Citadel, said Tuesday that investors are “almost certainly” in an AI bubble—though he isn’t telling them to dump their AI stocks
Summary
Citadel founder Ken Griffin said Oct. 20 that investors are "almost certainly" in an AI bubble, but that companies surviving a bubble tend to lead markets for decades. He compared GPUs to airline seats, warning that a chip glut could send prices into freefall, as fiber-optic cable prices did after the telecom overbuild around 2000. Griffin said corporate buyers are weighing premium OpenAI and Anthropic models against cheaper open-source ones, which strains against the labs' spending. “What’s left in the wake of these bubbles, if they want to use that word, is often game changing for the world.