Billionaire David Einhorn Slams Current AI Spending as ’Extreme’ - Here’s Why It Matters

Wall Street heavyweight David Einhorn just dropped a truth bomb on the AI gold rush—and the timing couldn't be more perfect.

The Spending Frenzy Hits Breaking Point

Greenlight Capital's founder calls current AI infrastructure investments 'extreme' while tech giants pour billions into hardware that might never pay off. We're talking data centers sucking power grids dry, chip shortages creating artificial scarcity, and venture capitalists chasing the next shiny object.

Why Crypto Stands to Benefit

While traditional finance burns cash on AI pipe dreams, blockchain networks quietly scale real-world solutions. Decentralized compute markets already offer smarter alternatives to centralized AI monopolies—and they don't require billion-dollar capital expenditures.

The irony? Wall Street's latest 'sure thing' looks suspiciously like dot-com bubble behavior—but this time, the smart money's watching from the crypto sidelines. Some things never change in finance—the herd mentality remains the most predictable AI of all.

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Even if AI lives up to the hype and outperforms bullish expectations, Einhorn warned that the returns on these investments are still highly uncertain. As a result, he questioned whether spending billions or even trillions of dollars each year would actually be worth it. For example, Nvidia (NVDA) plans to spend $100 billion to build data centers for OpenAI. At the same time, Microsoft (MSFT) recently agreed to spend $17.4 billion with Nebius Group (NBIS) over five years on AI infrastructure. Meanwhile, Alphabet (GOOGL) also plans to invest $9 billion in AI and cloud efforts through 2026.

Einhorn said that while many of these projects will get built, investors may not see the profits they are hoping for. In addition, he’s concerned about the broader economy, especially the job market. “I’m a little bit more of the view that we’re heading into or have been in a recession,” he said, pointing out that job growth is weak, the average workweek is getting shorter, and productivity isn’t improving much.

Which AI Stock Is the Better Buy?

Turning to Wall Street, out of the AI stocks mentioned above, analysts think that NBIS stock has the most room to run. In fact, NBIS’s average price target of $136.40 per share implies more than 27% upside potential. On the other hand, analysts expect the least from AAPL stock, as its average price target of $251.24 equates to a loss of 2.1%.