"Big Short" Investor Steve Eisman Warns: OpenAI Bankruptcy Could Cause a Recession

Steve Eisman, famous for predicting the 2008 financial crisis, warns that the AI stock boom poses significant concentration risk to the S&P 500. With 70% of hyperscalers' AI revenue coming from just OpenAI and Anthropic, and 70% of Nvidia's accounts receivable from five customers, a failure at a major AI startup like OpenAI could trigger a recession. However, Eisman believes such a crash would not be as severe as 2008.