Steve Eisman, the investor famous for anticipating the subprime crisis, has identified what he sees as the Achilles’ heel of the artificial intelligence boom. OpenAI and Anthropic represent approximately 70% of AI-related revenue at Microsoft, Amazon, Alphabet and Oracle, and between 25% and 35% of their cloud revenue. Eisman highlights the growing threat from Chinese open source models, which are cheaper and gaining market share, potentially triggering a price war in the sector. In response to this risk, he sold his stake in Google and moved to cash to reduce his AI exposure. Michael Burry, another renowned investor who shorted subprimes before the 2008 crisis, shares this caution by taking short positions on the semiconductor ETF SOXX, Micron, Nvidia, Caterpillar, Palantir, Tesla and Applied Materials.
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