Steve Eisman sold three AI Positions - Find out which on the full episode on Substack

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18 segments

0:00

Ultimately, how much demand will exist,

0:02

how much supply will be needed and

0:04

created, and who will have the deepest

0:06

pockets to survive are the open

0:08

questions. The reports of huge data

0:11

centers just about to come online might

0:14

actually be wishful thinking. For now,

0:17

for now, I think the AI capex story

0:19

remains intact. The buyers of chips

0:21

continue to increase their annual capex

0:24

spend, and Open AI and Anthropic are

0:26

racing towards IPOs, setting up exits

0:29

for the VC investors and access to

0:31

equity funding. However, the change of

0:34

the business model to a much more

0:36

capital intensive one bothered me a lot,

0:39

and as a result, I have sold three of my

0:42

long-held AI positions.

Interactive Summary

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While the AI capex story remains intact with chip buyers increasing spending and major players like OpenAI and Anthropic heading for IPOs, the speaker is concerned about the shift to a more capital-intensive business model. This concern led the speaker to sell several long-held AI positions, amidst lingering open questions about future demand, supply, and market survival.