Ken Griffin, founder of Citadel, said on October 20 that investors were “almost certainly” in an AI bubble, without recommending that they sell shares in the sector. He nevertheless believes that companies surviving a bubble generally become market leaders for decades. According to him, GPUs, whose marginal operating cost is low, could see prices collapse in the event of oversupply, as fiber-optic cables did following the telecommunications boom around 2000. Corporate buyers are now comparing premium OpenAI and Anthropic models with cheaper open-source alternatives, threatening the revenues of AI laboratories, chipmakers and cloud providers. Citadel has shed more than 80% of the risk in the portfolio it bought at a 10% discount, while Gartner forecasts nearly $1.5 trillion in worldwide AI spending in 2025.
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