Ken Griffin compares AI chips to airline seats, warns pricing could crash if supply exceeds demand

Citadel CEO Ken Griffin compared graphics processing units (GPUs) to airline seats, arguing that even heavily discounted seats still earn money, so pricing would collapse if GPU supply outstrips demand. He cited the telecom build-out around 2000 as a historical parallel where excess capacity drove prices down. Griffin also questioned the useful life of GPUs, noting chips five or six years old still earn extraordinary rates but may not hold, and said corporate buyers are increasingly choosing cheaper open-source AI models over premium ones.