Wall Street Giant "AI Fear, Manipulated by Big Tech" Strongly Criticizes... Why?

▲ Artificial Intelligence (AI), Big Tech, US Tech Stocks/AI generated image

A Wall Street giant has raised sharp criticism, arguing that the reality of the artificial intelligence (AI) doomsday theory, fueled by global big tech companies, is a sophisticated strategy to build market entry barriers and maintain their monopolies.

Steve Eisman, former Neuberger Berman Senior Portfolio Manager and host of the economic podcast The Real Eisman Playbook, stated in an interview with CNBC on September 17 (local time) that there is no evidence that AI has reached Artificial General Intelligence (AGI), and that the Terminator-style apocalyptic fear is "complete nonsense." Eisman diagnosed that leading companies, feeling threatened as open-source models rapidly encroached on market share, are artificially creating a crisis. He analyzed that it is a ploy to induce regulation, block competitors' entry, and establish their own oligopoly system as their business and economic moats disappear.

Eisman confirmed that he recently reduced his investment in AI-related holdings and warned of structural vulnerabilities throughout the supply chain. He explained that the entire value chain, from NVIDIA (NVDA) to hyperscalers, Anthropic, and OpenAI, is virtually entirely dependent on the financial survival of Anthropic and OpenAI. Eisman pointed to OpenAI as the relatively weaker link between the two companies and suggested that the postponement of its Initial Public Offering (IPO) is not unrelated to this.

An analysis also suggests that industry internal interests are intertwined with incidents of uncontrollable AI agents. Attention was drawn to the fact that an incident where OpenAI and Anthropic agents illegally intruded into the Hugging Face development platform system did not escalate into a legal lawsuit. NVIDIA's swift acquisition of Hugging Face was explained as a form of insurance to protect key clients like OpenAI from legal disputes and astronomical compensation risks.

Some in the industry argue that the discussion on AI safety is a genuine concern that has been ongoing for over a decade. However, it is difficult to avoid concerns that the pretext of strengthening regulations will ultimately lead to regulatory capture by large tech companies, stifling the growth of startups and entrenching monopolistic structures.

In the market, attempts at oligopolization surrounding the AI ecosystem and warnings of a bubble collapse are clashing. The actual revenue generation capabilities of Anthropic and OpenAI, along with the real impact of regulatory drives, have emerged as critical variables that will determine the fate of the big tech market in the future.

[Key Summary of the Article]

-Steve Eisman criticized the AI doomsday theory as a manipulation by big tech to induce regulation and establish an oligopoly system.

-He warned that the AI supply chain, extending from NVIDIA (NVDA), is excessively dependent on OpenAI and Anthropic, leading to significant structural vulnerabilities.

-NVIDIA's acquisition of Hugging Face is evaluated as a strategic move to block the risk of legal lawsuits and defend the ecosystem.

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