IBM Faces AI Threat, Not Opportunity, Says Short Seller Who Predicted Enron’s Collapse

Jim Chanos, the short seller famous for predicting Enron’s downfall, argues that AI poses a threat rather than an opportunity for IBM, which he describes as primarily a marketing and consulting company, not a cutting-edge AI leader. He highlighted IBM’s “India-centric body shop model” and recent software acquisitions, noting that its true innovations in the 21st century have been in financial engineering. Despite IBM’s recent strong Q4 2025 earnings, which saw a 12% revenue growth and beat Wall Street estimates, Chanos maintains his skeptical outlook on the company’s AI narrative.