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In this weekly wrap-up of The Real Eisman Playbook, Steve Eisman breaks down the AI narrative after the midterms, data center construction, and Anthropic’s latest data. Original English title: The AI Narrative Shifts Again: Midterms, Data Centers, and a Market Correction | The Weekly Wrap. The subtitles cover 0:00–31:16; this article covers the full interview.
Key points
- - AI capital spending accounts for at least 50% of this year’s GDP growth; a slowdown would mean slower economic growth. 0:37
- - The midterms changed the AI narrative, and CoreWeave is the second reason: interest on debt jumped from 9% to 15%, and new cloud providers are the weakest link. 1:52
- - A slowdown in data center construction could be a major positive for hyperscalers, which may return to positive cash flow by the end of 2027 and build with cash flow. 5:22
- - Thursday’s declines: AMD fell 17.3%, Micron fell 17.5%, Dell fell 15%, and Tesla fell 10.8%. Hyperscalers were the most resilient: Microsoft fell 3.6%, Amazon fell 2.2%, and Google fell 1.9%. 6:38
- - Anthropic’s third-quarter revenue growth quarter over quarter plunged from 147% to 47%, while its revenue-to-compute-spending ratio fell from 2.08 to 1.72. 13:35
- - The price war is underway: Anthropic cut prices by up to 50% in October, and OpenAI and Google followed with their own pricing. 14:42
Background and notes
This episode features an interview with Steve Eisman (The Real Eisman Playbook), covering the AI narrative after the midterms, data center construction, and Anthropic’s latest data. The subtitles cover 0:00–31:16; this article covers the full interview. The views and timestamps in the article are based on the original subtitles; each timestamp marks the start of the corresponding excerpt.