Billionaire David Einhorn Warns of ’Extreme’ AI Spending Risks

David Einhorn, founder of Greenlight Capital, has labeled current artificial intelligence investments as "extreme," cautioning they may lead to significant capital destruction. Speaking at a New York Stock Exchange panel, he highlighted incomprehensible spending levels by tech giants like Apple, Meta, and OpenAI—questioning whether trillion-dollar bets will yield returns.

Nvidia's $100 billion data center project for OpenAI and Microsoft's $17.4 billion Nebius Group deal underscore the spending frenzy. Alphabet joins with $9 billion committed through 2026. "Even if AI surpasses expectations," Einhorn noted, "the payoff remains uncertain." The remarks cast shadows on hyperscalers' infrastructure arms race while crypto markets watch for potential capital rotation.