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Ken Griffin Says AI Is Almost Certainly A Bubble, But He’s Not Worried

Citadel’s Ken Griffin gave a long interview recently, and two things stood out: how AI is changing work inside his own firm, and why he thinks parts of the AI market are almost certainly a bubble, without that being a reason to panic.

The Depressing Friday

Griffin described going home depressed one Friday after watching AI complete, in a few hours, work that used to take his PhD staff four to six weeks. He said he felt three things at once: fear for white-collar jobs as competitive advantages get “filled in by bulldozers”, worry that fields like translation may already be unrecoverable for workers, and genuine excitement about what this means for entrepreneurs. His advice for workers whose jobs sit in AI’s sweet spot is blunt: the country needs serious reskilling, and right now there’s talk but no real action.

Is It A Bubble?

Yes, almost certainly, he says, in parts. He compares it to the dot-com era: the metrics used to value internet companies back then were fanciful, but the internet itself still changed the world completely. His worry today is narrower and more specific than most headlines suggest. GPUs behave like airline seats: once there’s more supply than demand, pricing can collapse fast. He also flags a real tension: AI labs like Anthropic are planning to spend hundreds of billions of dollars, while many of their own corporate customers are trying to cut AI spending because they’re not getting clear value back.

On Trading And Research

Griffin was clear that Citadel’s edge still comes from people, not models. Research is the core of the business, he said, closer to journalism than to computing: understanding a business model, a market and management incentives. AI has automated the trading side of the job far more than the research side, because once you trust your research, AI lets you scale a position bigger and faster.

What This Means For Small Businesses

You don’t need to run a hedge fund to take something from this. Griffin’s experience points to the same pattern many small business owners see: AI is brilliant at speeding up the work that follows good thinking, and much less able to replace the judgement behind it. The people and the expertise are still where the advantage lives.

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Colin James, founder of OnBrandEcho

Colin James

20+ years building things on the internet, now focused on getting on-brand results from Claude. More about me →

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