Steve Eisman, the investor made famous by "The Big Short," stated that AI trading is approaching a "tipping point." He has significantly reduced his risk by hedging some positions but has not yet gone net short. Eisman is concerned that frontier model companies are building regulatory barriers by leveraging market anxieties about AI technology, and he believes that data disclosed by Anthropic reflects weakening capital efficiency. He also noted that AI queries are putting pressure on Alphabet's core advertising business. However, given the high correlation between the AI sector and the broader market, he is still hesitant to explicitly short AI trades.