Key Takeaways
- • Citadel founder Ken Griffin said the current AI run "almost certainly" looks like a bubble, speaking with Bloomberg's Dani Burger at Citadel's annual Future of Global Markets Conference in New York.
- • Griffin argued that major technological transformations are typically intertwined with speculative bubbles, citing the dot-com era and noting that the companies on the other side of such bubbles often become market leaders for decades.
- • Many corporate executives still do not know the ultimate cost of AI or how it will reshape growth, and Griffin said Corporate America has been "very uneven" in extracting value from its AI models.
- • Anthropic is expected to move toward a U.S. stock-market listing in the coming weeks, potentially among the largest IPOs, with the Wall Street Journal reporting the company could deploy $750 billion toward additional computing power in the years ahead.
Summary
Hedge fund manager Ken Griffin said the artificial intelligence boom "almost certainly" looks like a bubble. Speaking with Bloomberg's Dani Burger at Citadel's annual Future of Global Markets Conference in New York, Griffin linked large technological shifts to speculative episodes, stating, "Any radical transformation of our economy is generally intertwined with a bubble." Recalling the dot-com era, he said the companies on the other side of such bubbles "are the market leaders for decades to come," adding, "I just wish I'd kept my Amazon stock in that moment."
Griffin said many executives still do not know the ultimate price tag for AI or how it will reshape growth. Investor anxiety has intensified in recent weeks over fears that heavy upfront AI investment will take longer than expected to show up in profits and productivity. He said corporate America has been "very uneven" in its ability to extract value from AI models, noting that finance teams confronting charges from Anthropic and OpenAI are asking how to ensure they are getting productivity from the spending.
Anthropic is expected to move toward a U.S. stock-market listing in the coming weeks, a step that could rank among the largest initial public offerings. Proceeds would support spending on chips, data center capacity and talent. According to the Wall Street Journal, Anthropic could deploy $750 billion toward additional computing power in the years ahead. Griffin said Anthropic's long-term success will depend on proving to investors that its models are must-have tools across every industry.
Griffin's tone has shifted over the year. Earlier in the year at Davos he called AI "garbage," and by May at Stanford Business School he said he was depressed by what AI could do. At the current event, he was more optimistic about innovation in the U.S., while flagging job disruption: "You're seeing the threat to white collar jobs playing out; as a business owner, you're seeing your competitive moats be filled in by bulldozers. At the same time, you're thinking that this will be a golden era for entrepreneurs."
Griffin said many executives still do not know the ultimate price tag for AI or how it will reshape growth. Investor anxiety has intensified in recent weeks over fears that heavy upfront AI investment will take longer than expected to show up in profits and productivity. He said corporate America has been "very uneven" in its ability to extract value from AI models, noting that finance teams confronting charges from Anthropic and OpenAI are asking how to ensure they are getting productivity from the spending.
Anthropic is expected to move toward a U.S. stock-market listing in the coming weeks, a step that could rank among the largest initial public offerings. Proceeds would support spending on chips, data center capacity and talent. According to the Wall Street Journal, Anthropic could deploy $750 billion toward additional computing power in the years ahead. Griffin said Anthropic's long-term success will depend on proving to investors that its models are must-have tools across every industry.
Griffin's tone has shifted over the year. Earlier in the year at Davos he called AI "garbage," and by May at Stanford Business School he said he was depressed by what AI could do. At the current event, he was more optimistic about innovation in the U.S., while flagging job disruption: "You're seeing the threat to white collar jobs playing out; as a business owner, you're seeing your competitive moats be filled in by bulldozers. At the same time, you're thinking that this will be a golden era for entrepreneurs."
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