Careful MSFT, AMZN, ORCL Bulls: Trouble at OpenAI, Anthropic Could Trigger 'Sustained' AI Selloff, 'Big Short' Legend Says
Key takeaways
- Investors should be cautious of the AI trade, as Eisman's warning suggests a potential correction phase and price war among hyperscalers.
- Eisman estimates that roughly half of Oracle's remaining performance obligations, which total $638 billion, are tied to OpenAI.
- The recent debt pricing for CoreWeave's $2.6 billion loan yields above 9%.
- The AI bubble burst in 2026 market is currently at 19%.
What happened
Big Short investor Steve Eisman warns of a potential 'sustained' AI selloff due to OpenAI and Anthropic's health.
Why it matters
Eisman believes the health of these two companies is crucial to the entire AI ecosystem, which could lead to a correction phase and a price war among hyperscalers.
Short-term and longer-term
Short-term. Over the next day or two, watch Careful MSFT AMZN after the open: does the first move hold, and do other companies in the same business move with it.
Longer-term. Investors should be aware of the potential risks associated with the AI trade, including the health of OpenAI and Anthropic and the potential for cheaper Chinese open-source models to force a price war among…