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AI wave will "sink some boats," warns Citadel's Pablo Salame

FinanceInternationalBloomberg Línea30 s readAI summary
Image: Bloomberg Línea

Pablo Salame, co-chief investment officer of Citadel, said the enormous capital demand behind the AI revolution clashes with lenders unwilling to take on that risk, forcing a reconciliation between investors and creditors. "The rising tide of AI will sink some boats," he said. Citadel manages US$77 billion in assets. Salame said the credit market "hasn't finished readjusting" and that 30-year credit spreads seem "a bit fanciful."

In 30 seconds

  • Salame says the credit market is "seizing up" because it hasn't found a way to offload AI risk
  • Citadel, with US$77 billion in assets, sees pressure on lower-rated debt
  • Citadel founder Griffin said it is "almost certain" bubbles are emerging in AI
Read the full story at Bloomberg Línea

IASummary generated by artificial intelligence from a story by Bloomberg Línea. It may contain errors: the original source prevails.

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