Michael Burry revives AI warnings, Big Short investor says 'You could have heard it first'

Veteran American investor Michael Burry revived his AI warnings, sharing an analysis that found nine technology giants had amassed around $3 trillion in off-balance-sheet commitments related to the nascent technology.

The former hedge fund manager took to X to share a report by The Wall Street Journal that said that Google-parent Alphabet, Amazon, Facebook-parent Meta and Microsoft together reportedly disclosed $3 trillion in commitments largely for AI infrastructure, but these obligations are not yet recognized as liabilities on the face of corporate balance sheets.

“Well, you could have heard it first, months ago, 2025 even,” Burry, best known for correctly predicting the 2008 housing crisis, wrote on X. He has been vocal against the excessive frenzy around artificial intelligence for several months, even when global markets sharply rallied earlier this year amid the optimism.


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Michael Burry sees market near major top

Recently, Burry said he continues to believe that the market is close to a major top, warning of a similar crash to that of 1987 when Dow Jones recorded a historic 23% plunge which led to the introduction of regulatory circuit breakers. However, the market investor noted that the S&P 500 making new highs likely will bring new money into the market.

Burry continues to hold his short positions in the iShares Semiconductor ETF, Micron, Nvidia, Caterpillar, Palantir, Tesla and Applied Materials. “Again, shorting is not for everyone,” Burry wrote. “I must short. Most should not.”

Earlier this year, Burry wrote on a Substack post that he sees many indicators, both technical and fundamental, lining up for the same conclusion as the Dotcom crash. "1999 went where no market had gone before, and I would say so can this one...It is already there on a number of indicators," he said, arguing that massive venture capital flows, rising AI debt issuance, and extreme market optimism are creating conditions where valuations may detach from economic reality.

Burry’s popular bet against the housing market was depicted in the 2015 movie titled 'The Big Short', which starred Christian Bale, Ryan Gosling, Steve Carell and others.

Also read | Elon Musk vs Michael Burry: World's richest man says AI internet traffic will outpace humans, market expert asks who is paying

(With inputs from agencies)

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