Investor Steve Eisman and Michael Burry Criticize AI Spending and Prediction Markets

Investor Steve Eisman, famed for shorting the 2008 housing market, warned that the rapid scaling of large‑language models will soon hit diminishing returns. He argued that hyperscale firms such as Alphabet and Microsoft are pouring trillions into AI infrastructure without sufficient competitive moats, and he favours lower‑layer providers like Nvidia that supply the essential chips for AI workloads.

Separately, fellow "Big Short" alumnus Michael Burry denounced prediction‑market platforms such as Kalshi as a form of gambling that exploits regulatory loopholes. Burry highlighted the lack of safeguards against insider trading and cited reports showing that ordinary users have lost hundreds of millions while a small group of professional traders capture most profits. Both investors call for tighter scrutiny of emerging tech‑driven financial products.