'Big Short' investor Michael Burry sounds alarm on AI bubble that's 'too big to save'
Business Insider·2026-01-21 13:08

Core Viewpoint - The AI boom is perceived as a bubble of significant magnitude, with predictions that it will inevitably burst, impacting the stock market and the economy [1][2]. Group 1: Concerns about AI Companies - OpenAI is facing numerous challenges, including intense competition from Google's Gemini 3, rising costs, and legal issues, which may indicate broader issues within the AI sector [2]. - OpenAI's annualized revenue has dramatically increased from $2 billion in 2023 to over $20 billion last year, highlighting rapid growth but also raising concerns about sustainability [3]. - The spending target of $1.4 trillion over eight years by OpenAI has been criticized as overly ambitious, suggesting potential financial instability [2][4]. Group 2: Market Dynamics and Predictions - Major tech companies, including Nvidia, Alphabet, Apple, Microsoft, Amazon, Broadcom, Meta, and Tesla, are heavily investing in AI, collectively valued at over $22 trillion, indicating a significant market focus on AI technologies [5]. - There is a divide among experts regarding the AI boom; some view it as a temporary euphoria while others see it as a potential tech revolution, with predictions of a bust being considered likely by some veteran investors [6].