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David Einhorn Sounds Warning on the AI Spending Splurge​



David Einhorn

David EinhornPhotographer: Michael Nagle/Bloomberg
By Emily Graffeo
September 26, 2025 at 7:09 AM GMT+8
Updated on
September 26, 2025 at 10:11 AM GMT+8
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Takeaways by Bloomberg AI​

Hedge fund manager David Einhorn cautioned that the unprecedented amount of spending on artificial intelligence infrastructure may destroy vast amounts of capital, even if the technology itself proves transformative.

The Greenlight Capital founder said the trillion-dollar build-out by companies overall, such as Apple Inc., Meta Platforms Inc. and OpenAI is so extreme that the eventual returns are highly uncertain. While he expects AI will ultimately surpass today’s bullish forecasts, he questioned whether “spending a trillion dollars a year or 500 billion a year” will deliver good outcomes for the firms making those investments.

 
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