Big Short Investor Steve Eisman Warns of AI Trade Risk
Synopsis
Steve Eisman has warned that OpenAI and Anthropic could pose a major risk to the booming AI trade, with investors heavily reliant on the two companies’ success.
Steve Eisman AI warning includes the overreliance on OpenAI and Anthropic by big tech companies. Eisman indicates that these two organizations account for almost 70% of revenue of Microsoft, Amazon, Alphabet, and Oracle from AI.
He further says that almost 25 to 35% of the revenues from the cloud of the mentioned companies consists of the proceeds from OpenAI and Anthropic. Their fate is now linked with the fortunes of these technology giants, according to Steve Eisman.
The Steve Eisman AI warning originates from an investor, famous for betting heavily against the US mortgage market before the 2008 default.
Eisman has not given up his position that the AI industry faces mortal danger, unless one of the companies with an error makes a mistake, which will affect the other and the entire industry.
The problem is that the spending on AI infrastructure is increasing for corporations both in the US and Australia. According to Gartner, the value of global AI investments is projected to reach $2.59 trillion in 2026, an increase of 47% from 2025. Over 45% of that figure is set aside for AI infrastructure.
Chinese AI models add pricing pressure
The Chinese AI models create a challenge because of the pricing since they are expected to be less expensive than the available alternatives. According to Steve Eisman AI warning, if businesses opt for cheaper alternatives, they can jeopardize the market position of the other companies.
According to the 2026 AI Index Report from Stanford University, the value of AI investments in the US was $285.9 billion in 2025, while in China, it is $12.4 billion.
The sum was over 23 times higher than the Chinese equivalent, although the report noted that the private investments made by the Chinese companies did not include state-sponsored investments.
The warning on AI by Steve Eisman follows as the cloud service providers continue to invest significantly in AI infrastructure development with US and Australian corporations calculating the value of utilizing AI computing, software, and data.
Financial transparency on the private AI companies would help investors gauge their performance, according to Steve Eisman.
Source: CNBC
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
