Eisman: AI Giants Face Price Pressure, Morningstar Sees Cost Advantage
Steve Eisman, the investor known for his prescient warnings about financial risks, believes that OpenAI and Anthropic are vulnerable due to their heavy investment in computing power. He argues that cheaper rival models could force these giants to cut prices, threatening their ability to maintain such investments. Morningstar counters this with a $57 billion annual cost advantage by securing bulk…
Key points
- Steve Eisman warns of price pressure on OpenAI and Anthropic due to investment in computing power
- Morningstar estimates a $57 billion annual cost advantage through bulk computing power agreements
- Vercel data shows customers are spreading spending across multiple AI models, including cheaper alternatives
The story so far
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Steve Eisman Says AI Giants Have 'No Moats.' Morningstar's $57 Billion Math Says Otherwise
finance.yahoo.com · 29 October 2026
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