Business Insiderยท2025-11-05 10:19Core Viewpoint - Michael Burry, known for predicting the 2008 financial crisis, has returned to express skepticism about the AI boom, viewing it as a bubble driven by hype and speculation rather than genuine productivity gains [1][2][13]. Group 1: Burry's Perspective on AI - Burry's initial post upon returning highlighted the potential dangers of market bubbles, suggesting that sometimes the best strategy is to avoid participation altogether [2][3]. - He likens his role to that of a rebel against mainstream AI narratives, emphasizing the importance of individual analysis over societal trends [4]. Group 2: Market Indicators and Concerns - Burry's recent posts included charts indicating a sharp slowdown in growth for major cloud-computing divisions of Amazon and Alphabet, as well as a slight cooling in Microsoft's unit [9]. - He pointed out that capital expenditures in the US tech sector have surged during the AI boom, reminiscent of spikes before the dot-com crash and the 2008 financial crisis [10]. - Burry expressed concerns about the interconnected deals among AI companies, suggesting that massive investments could lead to idle infrastructure if demand falters [13]. Group 3: Investment Positions - Burry has taken significant bearish positions, purchasing put options on 1 million shares of Nvidia and 5 million shares of Palantir, with notional values of $187 million and $912 million respectively [14]. - These positions dominate Scion Asset Management's US stock portfolio, which consists of only eight holdings, indicating a highly unconventional investment strategy [15]. - The valuations of Nvidia and Palantir have soared, with Nvidia recently reaching a $5 trillion market value and Palantir valued at nearly $500 billion, raising concerns about their vulnerability to sharp declines if growth expectations are not met [16][17].