'Big Short' investor Steve Eisman on AI: The companies are trying to manufacture a crisis

Summary

Steve Eisman joins the program to discuss the AI boom and dismisses Terminator-style AI safety fears. He argues the major AI labs are trying to manufacture a regulatory crisis because open-weight models are taking share and they have no moats. He warns the entire AI chain, from Nvidia to hyperscalers to OpenAI and Anthropic, depends on the health of OpenAI and Anthropic, and says OpenAI is the weaker company. He also discusses Nvidia's Hugging Face deal as a possible insurance policy for OpenAI and says he has taken some AI exposure off.

• Steve Eisman dismisses AGI and Terminator-style AI safety fears as unsupported.
• He says token mixing is over and open-weight models are gaining market share.
• He argues major AI labs lack moats and are seeking regulation to create a duopoly.
• He warns the AI chain depends on OpenAI and Anthropic staying healthy.
• He calls OpenAI the weaker company and links its postponed IPO to that weakness.
• He suggests Nvidia's Hugging Face deal may protect OpenAI and the broader ecosystem.
• He says he has trimmed AI exposure and is not adding.
• Safety-slowdown rhetoric should be met with postponing IPOs, he says.