Ken Griffin, Vornado Realty Trust and Rudin landed a $3.3 billion construction loan for a new office tower on Manhattan’s Park Avenue, a project whose future was clouded earlier this year

Ken Griffin of Citadel questions the economics of the AI infrastructure boom: ›What happens when GPU supply exceeds demand & pricing goes into free fall? ›Are today's semiconductor margins sustainable? Are investors overestimating the useful life of GPUs? “Look, I think this market is actually experiencing people doing research. For the couple of years, if you were on the thematic program of we're gonna spend hundreds of billions or a trillion dollars in data centers, we're gonna build compute at a scale never seen before, which companies in that story are choke points in supply chains that will have abnormally high margins? And who will be the big winners in this transformation? Will it be the Microsofts & AWSs who will be the gatekeepers to the foundational models? Like, who's going to earn the economic rents? But in some sense, like, 'I'm just gonna buy them all. I'm gonna buy the hyperscalers, I'm gonna buy the chip, I'm gonna buy businesses that make things I've never even heard of 5 years ago in Korea and Taiwan & in Japan.' And now we're reaching a point where people are becoming more discerning. We do realize that we are seeing extremely high margins in DRAM & MLCCs in areas where there are real supply constraints, but people are now starting to look out 2 years, 3 years. How long is this going to last? And in particular, I don't wanna be doom & gloom, but GPUs, like airlines, have a very low marginal cost to run. The incremental seat on an airline that's not full, if you can sell that ticket for $20, you're making money in that seat. And that's one of the reasons that the airline industry is such a nightmare, is because the moment you have overcapacity, pricing goes into free fall. We saw this actually with the telecom build-out back in 2000. We built more fiber than we had demand for, & the price of telecommunications just went straight down. If we reach a point where the provisioning of GPUs exceeds demand for GPUs, marginal pricing will actually go into free fall. And that really upends all the investment assumptions that people are working with today. That's issue number one. And issue number 2 is: I think people are taking a step back & saying, 'What is the useful life of a GPU?' Right here, right now, there's people that are earning extraordinary pricing on GPUs that are 5 or 6 years old. And so there's a growing set of concerns that I can't give the same capitalization rate or the same revenue models to year 7, 8, 9 of a chip in the future that maybe I was using 12 months ago. So I think we're really grappling with just how far will this demand carry us in the marketplace.”

Ken Kutaragi, the man behind the original PlayStation, says he understands why gamers are angry about Sony moving away from physical discs, but he believes keeping them around is no longer “economically reasonable.” Kutaragi says physical discs have become a metaphor for “owning” games, while comparing them to smartphones, where people are already comfortable accessing their content digitally. He also suggested Sony may be thinking of PlayStation less as a traditional console and more as a connected “content terminal.” Kutaragi believes advances in AI and cloud computing could eventually mean we “won’t need any console” at all.

Ken Paxton kicked off a Texas bus tour to rally the GOP base ahead of a tight Senate race against Democrat James Talarico as some Republicans fear the seat could turn blue for the first time in decades