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Steve Eisman argues the artificial intelligence trade rests on a dangerous concentration of demand, a claim complicated by the massive scale of current hyperscaler spending.
The former short-seller, known for betting against subprime mortgages, stated on his September 21 podcast that 70% of hyperscaler AI revenue comes from just two companies: OpenAI and Anthropic.
He identified OpenAI as the potential single point of failure for the entire cycle, noting that these two entities represent roughly 25% to 35% of total cloud revenue for major providers.
The Concentration Risk The risk is that the supply chain, led by NVIDIA and Microsoft, is built on the assumption that these two labs will continue to consume compute at current rates.
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