News about Citadel

Citadel founder Ken Griffin told Bloomberg at Citadel's Future of Global Markets conference that there are almost certainly bubbles within the current AI boom. He compared GPUs to airline seats, warning that once capacity exceeds demand prices may collapse, similar to the fiber-optic bust around 2000. Yet Citadel's amended 13F for Q2 2026 showed about $8.6 billion in five AI-linked companies, with Amazon its second-largest holding; its Amazon and Microsoft share counts rose 34% and 43%, while Nvidia shares fell about 37%. The filing also disclosed options on Nvidia and Micron that may hedge risk, and it is only a snapshot as of June 30.

Citadel founder Ken Griffin told the Future of Global Markets Conference in New York that investors are “almost certainly” in an AI bubble. He said many U.S. companies have struggled to extract value from their AI models and are now scrutinizing bills from Anthropic and OpenAI, while Anthropic may put $750 billion toward computing capacity over the next several years. Griffin argued that companies on the other side of a bubble tend to be market leaders for decades. Results from NVIDIA, Microsoft, Amazon and Broadcom still showed strong growth, so suppliers kept posting record numbers. The article also describes how the Situational Awareness fund, heavy in SanDisk and Micron, was forced into a distressed sale to Citadel after margin calls during the AI sell-off, and how Citadel profited by supplying liquidity in the panic.