These warnings come as companies scrutinize spending on models from OpenAI and Anthropic, the latter of which is reportedly planning $750 billion in future compute expenditures. While the CEO of Deutsche Bank stated he does not see a bubble in the sector, Griffin maintains that investors are "almost certainly" in the midst of one, though he remains bullish on the long-term potential of AI technology.
Friday, October 23, 2026
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Citadel's Ken Griffin Warns of GPU Price Free Fall in AI Bubble
AI2 days ago
The proliferation of artificial intelligence chips may lead to a collapse in hardware pricing if supply eventually outstrips demand, Citadel CEO Ken Griffin said in an interview with Bloomberg. Speaking at the Future of Global Markets Conference in New York, Griffin likened the risk to the telecom fiber-optic overbuild of 2000, where excess capacity caused prices to enter a "free fall." He questioned if current semiconductor margins are sustainable and warned that investors might be overestimating the useful life of graphics processing units.
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