An investor who accurately called the 2008 housing market collapse believes that OpenAI has once again received a direct hit from Google.
In a new podcast episode, Steve Eisman says Alphabet (GOOGL) dipped last week after investors got jittery about its $180 billion allocation for AI CapEx this year.
But Eisman says OpenAI should be the one paying very close attention to Google.
“The company that should be really nervous about Google’s huge CapEx guidance is OpenAI, which is private. The AI-LLM competition has become an arms race. How is OpenAI going to compete with Google when the CapEx numbers just keep getting bigger and bigger?”
According to Eisman, Google can continue to pump tens of billions of dollars into CapEx, whereas OpenAI needs to continue raising funds just to keep the lights on.
“Now, Google can still fund these expenditures because it is a hugely profitable company. OpenAI burns cash and has to raise money to compete. If venture investors ever get nervous and turn off the money spigot, OpenAI is done.
After this Google report, if I were a venture investor in OpenAI, I would be petrified.”
Eisman’s comments come after Nvidia CEO Jensen Huang walked back an up to $100 billion investment in OpenAI. According to Huang, the $100 billion agreement, which was reported in September 2025, was never on the table.
In January, reports emerged that OpenAI has been floating ad prices of around $60 per 1,000 views, a rate commonly witnessed in primetime sports broadcasts, not in digital advertising.
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