Michael Burry Warns AI Mania Echoes Dot-Com Bubble, Urges Investors to Raise Cash
Michael Burry, the investor portrayed in “The Big Short” and founder of Scion Asset Management, is known for anticipating the 2008 financial crisis. He believes enthusiasm for AI is driving up technology-stock valuations and that the market resembles the dot-com bubble of 2000, drawing investor attention to his warning.
Burry recently said the AI boom was showing signs of a speculative bubble and advised investors to reduce their equity exposure and raise cash holdings to guard against a sharp market correction. He did not specify how much stock to sell or what proportion to hold in cash. He also cautioned ordinary investors against rushing to short the market because a bubble can continue to inflate before it bursts.
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The history behind this eventMichael Burry Slams SpaceX, Anthropic Valuation Bubbles, Warns AI Compute Demand Is Illusory
Michael Burry, famed for accurately betting on the 2008 U.S. housing market crash and inspiring “The Big Short,” has questioned the lofty valuations of SpaceX and Claude developer Anthropic. He argues that competition among AI companies for computing power has created artificial demand. As compute becomes increasingly commoditized, expanding data centers and chip orders could result in oversupply.
On June 1, 2026, Burry wrote on Substack that SpaceX’s S-1 showed $18.7 billion in 2025 revenue and a $4.9 billion net loss, figures he said could not support a valuation of $1 trillion to $2 trillion. Anthropic raised $65 billion on May 28 at a $965 billion valuation. On June 17, he said SpaceX was valued at about $2.8 trillion. Although he explored put options to short the company, he ultimately said, “No, thank you.”
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