Investor Steve Eisman, known for his role in "The Big Short," warns that AI revenue models of major tech companies, including Oracle, face significant risk. His concern centers on an over-reliance on startups OpenAI and Anthropic. He estimates these startups drive roughly 70% of AI-related revenue for major cloud providers.
Eisman identifies the rise of cheaper open-source AI models, particularly from China, as the primary threat. This could trigger a price war. A price war would pressure the profitability of OpenAI and Anthropic. This could reduce their substantial spending on cloud infrastructure. This creates a vulnerability for hyperscalers like Oracle, which have invested heavily to support these key AI customers.