Ken Griffin warns of AI bubble as Nebius and CoreWeave stocks tumble

Shares of Nebius and CoreWeave have fallen sharply this month amid ongoing investor concerns about an AI bubble, with CoreWeave down over 60% from its peak, erasing billions in value. Billionaire Ken Griffin, founder of hedge fund Citadel, has warned the market is clearly in an AI bubble, joining analysts like Ray Dalio and Michael Burry, who holds short positions in Nebius. Gartner also noted AI infrastructure firms may need trillions in revenue to justify spending, risking writedowns by 2030. Despite strong revenue growth, with CoreWeave reporting over $2.5 billion in Q3 and Nebius over $529 million, both face risks from rising competition and potential asset writedowns as new chips launch. High short interest persists amid these concerns.