Michael Burry launches newsletter to lay out his AI bubble views after deregistering hedge fund

Core Viewpoint - Michael Burry has launched a Substack newsletter titled "Cassandra Unchained" to express his bearish views on artificial intelligence, drawing parallels to past market bubbles [2][4]. Group 1: Market Analysis - Burry believes that current markets are in bubble territory similar to the late 1990s tech mania, with investors ignoring profitability concerns and funding large capital expenditures based on the assumption that AI technology will transform the economy [2][4]. - He references past comments from Federal Reserve Chair Jerome Powell, who dismissed bubble fears by stating that AI companies are "actually profitable," which Burry sees as reminiscent of former Fed Chair Alan Greenspan's assurances about housing prices before the 2008 crisis [5][6]. Group 2: Historical Context - Burry recalls his own experience during the dot-com boom when he was shorting Amazon, and he now expresses a similar bearish stance on AI leaders like Nvidia and Palantir [6]. - He highlights the historical pattern of policymakers underestimating market bubbles, suggesting that the current situation with AI is echoing past mistakes [4][6].