Many AI projects will be built, said David Einhorn, but investors may not see the payoffs they anticipate. Photo by JOSEP LAGO/AFP via Getty Images

Hedge fund manager David Einhorn cautioned that the unprecedented amount of spending on artificial intelligence infrastructure may destroy vast amounts of capital, even if the technology itself proves transformative.

The Greenlight Capital Inc. founder said the trillion-dollar build-out by companies overall, such as Apple Inc., Meta Platforms Inc. and OpenAI is so extreme that the eventual returns are highly uncertain. While he expects AI will ultimately surpass today’s bullish forecasts, he questioned whether “spending a trillion dollars a year or US$500 billion a year” will deliver good outcomes for the firms making those investme

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