Ken Griffin warns of potential AI bubble amid massive tech spending

Citadel founder and CEO Ken Griffin has cautioned that there are “almost certainly bubbles within this moment in time,” noting that radical economic transformations are often accompanied by market bubbles. While expressing concern over valuations, Griffin suggested that companies surviving such corrections can lead markets for decades, drawing a parallel to the internet era.

The debate centers on the unprecedented scale of capital expenditure by major technology firms. Alphabet, Amazon, Microsoft, and Meta have collectively guided toward more than $700 billion in capital expenditure for 2026, primarily targeting data centers, chips, and power infrastructure. UBS projects that hyperscalers could spend $4.1 trillion on AI infrastructure between 2026 and 2028.

Investors remain focused on whether revenue from AI products will grow rapidly enough to provide adequate returns on this massive investment, especially as computing capacity increases.