Eisman warns AI boom concentrated in OpenAI Anthropic

Steve Eisman, the investor known for betting against the housing market before the 2008 financial crisis, warned on CNBC's 'Fast Money' that the artificial intelligence boom is dangerously concentrated around two private companies, OpenAI and Anthropic. He estimated that these two startups account for roughly 70% of AI-related revenue at Microsoft, Amazon (company), Alphabet's Google, and Oracle, and between 25% and 35% of those companies' cloud revenue. Eisman said the futures of these massive companies are effectively a bet on the success of OpenAI and Anthropic. He identified Chinese open-source AI models as the most significant threat, noting they are cheaper and appear to be gaining market share, which could trigger a price war. Michael Burry, another 'Big Short' investor, has taken a more bearish stance, questioning whether AI demand comes from end customers and suggesting much of it is financed through circular arrangements. Burry has placed bearish bets against Nvidia and the broader semiconductor sector. The warnings add to a growing debate about whether the massive capital expenditure on AI infrastructure will generate adequate returns.