Ken Griffin Warns AI Bubble Could Pressure GPU Prices

Citadel founder Ken Griffin says the AI boom is “almost certainly” in a bubble, but he is not urging investors to sell. He argues that, as with the late-1990s internet boom, speculative excess can accompany transformative technology, and surviving firms may lead their markets for decades. Griffin warned that a glut of GPUs could push prices lower, comparing their capacity to airline seats and recalling how excess telecom fibre capacity around 2000 drove prices down. He also questioned whether older chips can sustain today’s high rental rates. The Philadelphia Semiconductor Index fell about 15.7% over eight consecutive sessions from 6 to 16 October, highlighting volatility in chip stocks. Businesses are scrutinising AI bills and weighing premium models from OpenAI and Anthropic against cheaper open-source alternatives. They are also assessing whether AI spending delivers enough productivity gains to justify the cost. Gartner forecasts nearly $1.5 trillion in global AI spending in 2025, but weaker demand for premium services could affect chipmakers and cloud providers first. For crypto traders, the AI bubble debate is an indirect indicator of risk appetite, not a direct development for digital assets. A pullback in AI investment could weigh on technology shares and broader sentiment, potentially influencing crypto in the short term; the long-term impact depends on whether AI investment produces durable business returns.