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Is 75 cents of every AI dollar just VC money? Ken Griffin says AI is 'almost certainly' a bubble
First seen on X 12 hours ago@chamath ♥ 3,103
Citadel founder Ken Griffin said on Oct 20 that investors are "almost certainly" in the middle of an AI bubble. A post by The Kobeissi Letter relaying his remarks passed 580,000 views and 3,000 likes.
Griffin spoke with Bloomberg's Dani Burger on stage at the Citadel Securities Future of Global Markets conference in New York, per Bloomberg. He said companies are struggling to turn AI spending into productivity gains, while remaining bullish on the technology's long-term potential.
Social Capital CEO Chamath Palihapitiya added numbers. "1% of companies represent 90% of AI spending. Of that 90%, 80% of this spend are from unprofitable VC backed companies," he wrote on X. "So, roughly, $0.70-75 of every dollar of AI spending right now comes from AI companies spending VC investment dollars." He compared it with early AWS, whose customers were mostly venture-backed startups, and said a few "clearing events" came before cloud became a cash machine. The post drew 350,000 views.
Not everyone bought it. Deutsche Bank CEO Christian Sewing played down Griffin's bubble fears, Bloomberg reported. A day earlier, The Wall Street Journal reported that Anthropic's draft IPO filing showed an $80.7 billion net loss for the first half.
“1% of companies represent 90% of AI spending. Of that 90%, 80% of this spend are from unprofitable VC backed companies.”
