Billionaire Ken Griffin warned investors in the AI industry to brace for setbacks, but top financial and investment executives have since dismissed concerns about a bubble in artificial intelligence.
Christian Sewing, CEO of Deutsche Bank, told reporters during the Global Dialogue in Berlin that he does not expect significant reversals in asset prices in the short term and sees no need for alarm. Larry Fink, CEO of BlackRock, advocated accelerating the construction of AI data centers, arguing that any delays could drive up computing costs, threatening economic growth and exacerbating inflation.
“Overall, I don’t think we’re in a bubble about to burst,” Sewing said on Bloomberg Television on Wednesday. “Will we see certain companies face some setbacks? That’s certainly possible.”
In recent weeks, investor concerns over the sustainability of the AI boom have intensified, as they worry that the massive upfront capital expenditures required by the technology may take longer than expected to translate into profits and productivity gains. According to The Wall Street Journal, Anthropic PBC, one of the leading AI developers, could invest $750 billion over the next few years in additional computing power.
Griffin, who runs the business empire including hedge fund Citadel and market maker Citadel Securities, warned Tuesday that investors are “almost certainly” in a bubble as companies weigh how much to invest in AI technology. Griffin had previously criticized AI, even calling it “garbage,” but has since shifted his tone to become more positive.
“Fundamental changes in the economy usually come with bubbles,” Griffin said on Tuesday. “And if we use that word, these bubbles often coincide with major technological shifts.”
Fink earlier dismissed fears of an AI bubble, pointing instead to supply shortages and unexpectedly strong demand. He also cautioned that delays in building out the technology could ultimately limit its applications.
“If we don’t build these data centers, we’ll actually be fueling inflation because current computing costs are too high,” he said on Wednesday. “The faster we build data centers, the more computing capacity we’ll have, and the faster costs will come down.”
“Concerns about being in a bubble are unfounded,” Sewing said. “But unlike a bubble, what we’re seeing is persistent volatility,” he noted, citing ongoing geopolitical tensions.
Both Fink and Sewing believe fiscal deficits pose a more pressing concern than AI—especially as the AI sector competes with government spending for investor capital.
