Ken Griffin Compares AI Chips to Airline Seats, Says Glut Could Send Pricing Into Freefall

Citadel CEO Ken Griffin says a glut of artificial intelligence (AI) chips could send pricing into freefall, comparing graphics processing units (GPUs) to airline seats that earn money even when sold cheap. Griffin said bubbles almost certainly exist within AI, though he stopped short of predicting a collapse. Companies that emerge on the other side of bubbles lead markets for decades, he added. Does Ken Griffin’s Airline Analogy Fit AI Chips? Griffin spoke with Bloomberg ‘s Dani Burger at Citadel’s annual Future of Global Markets Conference in New York. “GPUs like airlines have a very low marginal cost to run.” Ken Griffin, speaking to Bloomberg He argued that an unfilled airline seat sold for as little as $20 still earns money, so fares collapse once capacity exceeds demand.

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