Steve Eisman Hedges AI Bets as Anthropic’s Revenue-to-Equipment Ratio Falls to 1.7
Updated
Updated · CNBC · Oct 29
Steve Eisman Hedges AI Bets as Anthropic’s Revenue-to-Equipment Ratio Falls to 1.7
1 articles · Updated · CNBC · Oct 29
Summary
Steve Eisman said he has sharply cut portfolio risk by shorting many positions against the box, arguing the AI trade is nearing a tipping point even though he is not net short.
Anthropic’s S-1 helped drive that caution: Eisman said missing current-quarter revenue figures and a revenue-to-equipment-expense ratio sliding from 2.08 in Q2 to 1.7 in Q3 point to weakening capital efficiency.
He also argued frontier model companies are using fear around AI to build a regulatory moat against cheaper rivals while masking softer fundamentals.
Google’s latest results reinforced his concern after Alphabet shares fell on weaker core advertising, with executives saying fast-growing AI-mode queries monetize at lower rates than traditional search.
Eisman said betting outright against AI remains difficult because the trade is deeply embedded across the broader tech sector, equity market and economy.