**New York, NY – October 9, 2025** – Renowned investor Steve Eisman, famous for his prescient bet against the 2008 housing market, has issued a stark assessment of the current U.S. economy, asserting that without the monumental impact of artificial intelligence, underlying growth would be virtually nonexistent. In recent commentary, Eisman highlighted a "tale of two cities" within the American economic landscape, where robust Gross Domestic Product figures mask a profound dependence on AI investments, without which, he claims, the economy "is not even growing 50 basis points". #^[1][2]## The AI-Driven Illusion of Growth Eisman, a senior portfolio manager at Neuberger Berman and host of "The Real Eisman Playbook" podcast, articulated his views in a recent episode, emphasizing that the headline economic growth figures are largely attributable to the massive influx of capital into AI technologies. The U.S. economy, which recorded a GDP of $29.18 trillion in 2024, is projected to expand by 1.8% in 2025, translating to approximately $530 billion in growth. Ho^[3]wever, Eisman contends that a staggering portion of this, around $400 billion, stems directly from investments in AI infrastructure by tech giants such as Google, Amazon, and Microsoft. "^[3]Without these investments, the growth of the U.S. economy would be barely perceptible," Eisman stated, underscoring the critical role of technological innovation in sustaining economic momentum, particularly amid broader uncertainties. Th^[3]is perspective suggests that while the overall economic picture may appear healthy, a deeper look reveals a narrow, technologically concentrated engine driving progress. ### Unprecedented Investment and Energy Demands Eisman is "unequivocally bullish on artificial intelligence as the dominant narrative shaping markets," viewing it as a "structural shift, comparable to the internet boom of the late 1990s". Th^[4]is bullishness is reflected in the unprecedented capital expenditure by major tech firms. Collectively, companies like Meta, Google, and Amazon are channeling over $300 billion into AI-related CapEx. T^[5]he burgeoning AI sector is not just transforming software and services; it's creating immense demands on physical infrastructure, particularly energy. * The surge in AI applications is spurring significant investments in data centers and computing power. * ^[4] These new data centers are projected to triple their energy consumption by 2030. * ^[4] This escalating demand is prompting tech giants to forge deals with nuclear power providers, signaling a potential "nuclear power revival" to secure stable and substantial energy supplies. * ^[4][6] Eisman highlights this intersection of AI and energy as a crucial area for investors, warning that ignoring it could mean missing out on substantial opportunities. #^[4]## Broader Economic Context and Potential Pitfalls While Eisman champions AI's transformative power, he also draws a "potential" analogy to the dot-com bust of 2001. He^[5] cautions that if the massive investments in AI do not yield proportionate results, the market could face a "painful digestion period" similar to the recession caused by overinvestment in the internet era. So^[5]me critics, he notes, argue that the current method of scaling large language models might be "beginning to lose steam," with new iterations like ChatGPT 5.0 showing only marginal improvements over their predecessors. E^[5]isman also downplays the Federal Reserve's influence on the current economic narrative. He believes that any future interest rate cuts, likely limited to around 100 basis points in total, will be mere "tinkering" that holds little sway over the broader economy, which is primarily driven by the "massive build-out of artificial intelligence infrastructure". De^[6][7]spite a generally "benign economy" with strong consumer spending and a resilient job market, concerns persist regarding rising household debt and weakening consumer demand. Fu^[4][3]rthermore, the impact of AI is beginning to be felt in the tech consulting sector, where companies like Gartner are seeing reduced revenues as clients utilize AI for analysis, a trend that could have "negative implications for parts of the software sector as well". I^[8][9]n conclusion, Steve Eisman's assessment paints a picture of a U.S. economy increasingly reliant on the AI revolution for its vitality. While acknowledging the immense potential and ongoing investment, his warnings about the concentrated nature of this growth and the need for tangible returns on AI capital expenditures serve as a critical reminder for investors and policymakers navigating this evolving technological landscape.

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