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SE Steve Eisman Steve Eisman Investor known for betting against the subprime mortgage market before the 2008 financial crisis, a story told in Michael Lewis's book The Big Short.

“It just seems that there are no moats around this business. If it's the case that they actually did cut prices by 50%, that would reinforce the concept that there are no moats and that the only way you're going to gain share is price. Being in a business where you are committed to spend $800 billion, where your entire franchise is just simply based on price, is dangerous.”

The Prof G Pod with Scott Galloway · Tech Strategy & Big Tech · October 2026

“It just seems that there are no moats around this business. If it's the case that they actually did cut prices by 50%, that would reinforce the concept that there are no moats and that the only way you're going to gain share is price. Being in a business where you are committed to spend $800 billion, where your entire franchise is just simply based on price, is dangerous.” — Steve Eisman, The Prof G Pod with Scott Galloway

Context

In a replayed clip, an investor is asked whether he would buy into Anthropic after reading its S-1, and says no. Here he explains the bigger worry: huge compute commitments paired with price as the only competitive lever.

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Transcript

The Prof G Pod with Scott Galloway Around 22:37 into the episode
George Hahn

…the Anthropic S1 is that the income statement doesn't tell you the full story. It doesn't mean it's a bad company. It doesn't mean they don't have an incredible product. They do. But it does mean that there is still a lot of risk. The business model hasn't been figured out yet. And until it is,

Speaker 2

…an answer for that. That I can answer you. Tell me. No. I was going to ask you: are those? I was going to go to the point quickly. I was going to ask you: would you need to know the answers to the questions that you just brought up before investing? I assume the answer is yes, you would. Oh, yes.

Speaker 3

But I think, look, to me, the bigger, bigger, bigger question is: it just seems that there are no moats around this business. I mean, if it's the case that they actually did cut prices by 50%, that would reinforce. The concept that there are no modes and that the only way you're going to gain share is price. Being in a business where you are committed to spend $800 billion, where your entire franchise is just simply based on price, is dangerous. It's not a good idea, but it's not a good idea. I like that out and it's not a good thing.

Speaker 4

Laura is a podcast from the Nedland Reinhardt von Bank.

Speaker names come from our own diarization. The position is estimated from where the line sits in the episode.

More from The Prof G Pod with Scott Galloway

“The most important numbers in the filing came at the end of the document, where we learned that Anthropic has signed more than $800 billion in future compute commitments, none of which are reflected in the current income statement, but all of which eventually will be.” — Ed Elson, The Prof G Pod with Scott Galloway “They picked out a few variables and they said blue equals regulation equals slow building equals expensive housing. And I don't think that's correct. I think it's density. It's really hard to build in dense places. And dense places happen to be the ones that attract highly skilled people who tend to be lefty.” — Aziz Sunderji, The Prof G Pod with Scott Galloway