Hedge fund manager David Einhorn warns that extreme spending in the AI sector could lead to significant capital losses

Hedge fund manager David Einhorn warned that while artificial intelligence technology itself is transformative, unprecedented spending on AI infrastructure could destroy a significant amount of capital. The founder of Greenlight Capital stated that the trillions of dollars invested overall by companies like Apple, Meta Platforms Inc., and OpenAI are excessively extreme, with highly uncertain final returns. While he expects that AI will ultimately exceed current optimistic expectations, he also questioned whether "investing $1 trillion or $500 billion in a year" would yield good returns for the companies making these investments