From 24/7 Wall St. · Joel South · · 1m 20s
Ken Griffin Calls AI Bubble But Buys Tech Stocks
Hedge fund giant Ken Griffin admits AI is a bubble but bets on its long-term growth.
In brief
Hedge fund giant Ken Griffin admits AI is a bubble but bets on its long-term growth. Ken Griffin says AI is a bubble but remains bullish on its long-term potential. Originally reported by 24/7 Wall St..
Griffin's AI Bubble Warning
Citadel founder Ken Griffin called AI almost certainly a bubble at the Future of Global Markets Conference on October 20, 2026.
“i think all of corporate america is looking at their bills from anthropic and openai and going okay we need to think about how to make sure we're getting productivity out of this”
AI Spending vs Productivity
Griffin says corporate america has been uneven in extracting value from ai models, with companies struggling to turn ai spending into productivity gains.
AI Bubble Signs
Griffin expects a surge of startups and a golden era for entrepreneurs despite ai threatening white-collar jobs and competitive advantages.
Supplier Earnings Surge
NVIDIA reported $96.22 billion in q2 revenue, up 105.8%, while microsoft azure crossed $100 billion in full-year revenue.
Citadel's AI Trade
Citadel used 400% leverage to short software stocks, losing $35 billion before cutting exposure by over 80%.
Griffin's Long-Term View
Griffin believes companies surviving ai bubbles become market leaders for decades, like amazon after the dot-com bubble.
“i just wish i'd kept my amazon stock in that moment”
What Investors Should Take Away
Bubbles and real transformations coexist; broad exposure to cash generators handles shakeouts better than concentrated ai positions.
The one thing
Ken Griffin says AI is a bubble but remains bullish on its long-term potential.
