Steve Eisman says SpaceX IPO worries him over costly AI push

As SpaceX prepares for its record-setting IPO, investor Steve Eisman said he is cautious. He told CNBC on Monday that he isn't planning to short the stock, but the company's S-1 filing raised concerns. Eisman highlighted how capital-intensive SpaceX has become.

"If you go back to fiscal year 2023 and you compare revenue to capex, capex was only 42% of revenue, and in the most recent first quarter, it was 215% of revenue," he said, attributing the surge to an AI buildout as the company pivots toward branding itself as an AI services and infrastructure company.

He added he doesn't view Grok as a leading AI model and, despite a compute partnership with Anthropic, still sees the business as overly capital intensive. He pointed to Google's $80 billion capital raise as the week's most important news, saying it highlights a wider shift in tech from asset-light to asset-heavy as data-center buildouts accelerate.

spacex, steve eisman, ipo, s-1, capex, revenue, ai buildout, grok, anthropic, google