Michael Burry, the investor famous for accurately predicting the 2008 subprime crisis, said the success of the artificial intelligence (AI) industry is now just as crucial to the U.S. government as it is to the tech giants driving the boom.
The real-life inspiration for the film "The Big Short" said the Trump administration has little room to cool down the AI boom.
He believes that although he remains bearish on several companies at the core of the AI trade, AI infrastructure buildout has already become a key force supporting the U.S. economy.
Burry reportedly wrote in a recent Substack chat: "Trump and his team know that the AI narrative and infrastructure buildout are the only forces holding up the economy, and the most positive thing that has happened this year."
He added: "They can't afford to let it fall."
At the same time, he also questioned what measures Washington could actually take to prevent the economy from sliding into a downturn.
Burry's bearish bets on U.S. AI stocks began in the third quarter of 2025 with put options on Nvidia (NVDA.US) and Palantir (PLTR.US) with a notional value of about $1.1 billion, which expanded in 2026 into a full-chain short network covering semiconductors, memory, and AI infrastructure, including bearish bets on Micron Technology (MU.US), Oracle (ORCL.US), Nebius (NBIS.US), and the iShares Semiconductor ETF (SOXX).
He has also repeatedly questioned the logic of AI investment and believes that massive capital expenditure may not necessarily translate into sustainable returns.
In addition, circular financing, misstated GPU depreciation schedules, and off-balance-sheet liabilities are all pillars of Burry's bearish bets on U.S. AI stocks.
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