Citadel founder Ken Griffin stated on October 20, 2026, that investors are likely in an AI bubble. Speaking at the Future of Global Markets Conference, he noted that corporations are struggling to justify high spending on AI services from providers like OpenAI and Anthropic.
Griffin highlighted that companies face uncertainty regarding return on investment and rising costs. Projections indicate that US spending on AI-related data centers will exceed $500 billion in 2026, a sector currently experiencing market volatility and semiconductor stock selloffs.
Despite his concerns about market excess, Griffin reported significant productivity gains within Citadel. The firm uses agentic AI systems to reduce the time required for complex financial research from 6-8 weeks to 2-3 hours.
Griffin suggested that AI could lower barriers for new entrepreneurs, potentially increasing market competition. He advised investors to adopt a more selective approach as companies begin to demand clearer proof of returns on their AI expenditures.
