Brief
Investor Michael Burry warns AI bubble could burst within a year
Burry, famed for his 2008 housing crash bet, says AI hype could collapse within the next year and is adjusting his options positions accordingly.
By Felo News Desk · Published
Investor Michael Burry, known for predicting the 2008 housing market crash, said on his Substack that the "bubble in AI may burst sooner than later" and that he is "moving timelines up" (Gizmodo). He explained that he expects a slowdown in AI spending to trigger a market correction within the next year.
Burry is converting some of his short positions into put options that expire within the year, targeting Nvidia, Palantir, Oracle and the Nasdaq 100 index. He noted that Nvidia’s recent $150 billion share‑buyback program does not offset the broader risk, as the company sits at the centre of a circular financing web within the AI sector.
According to the report, Burry also warned that a halt or slowdown in AI spending could cause the system to "come apart," and he cautioned against increasing reliance on debt to fund AI projects.
Key facts
- Michael Burry says the AI bubble may burst sooner than later and is moving timelines up. (gizmodo.com)
- Burry is buying put options expiring within a year on Nvidia, Palantir, Oracle and the Nasdaq 100. (gizmodo.com)
- Nvidia announced a $150 billion share‑buyback program the same week. (gizmodo.com)
Sources
- [1] gizmodo.com — originally reported as “'Big Short' Investor Expects AI Bubble Burst 'Sooner Than Later'”
