Ken Griffin warns of 'almost certain' AI bubble, Blackstone disagrees

Ken Griffin, founder of hedge fund Citadel, warned that investors are "almost certainly" in an AI bubble, comparing the investment wave to the dot-com era. He cited risks of chip oversupply and unclear returns on massive spending. Griffin highlighted three key risks: chip supply potentially exceeding demand, uncertain economic lifespan of chips, and companies struggling to show productivity gains justifying costs. Tech firms issued about $193 billion in AI-related debt by early August, raising default concerns. Blackstone's John Gray countered that computing power demand still outpaces supply, noting prices rose 50% and older chips retain value. The debate follows a 2.6% Nasdaq drop and $616 billion in chip sector losses, while Blackstone shares rose 8% on strong earnings.