Michael Burry from The Big Short has bet $1,100,000,000 on the AI bubble bursting
Published on Nov 05, 2025 at 9:27 PM (UTC+4)
by Claire Reid
Last updated on Nov 05, 2025 at 9:43 PM (UTC+4)
Edited by
Emma Matthews
American investor Michael Burry, who was played by Christian Bale in The Big Short, has put a huge $1.1 billion bet against AI.
It’s safe to say that artificial intelligence has come a long way in a relatively short period of time.
Once an idea confined to science fiction, these days AI is embedded into a huge range of industries and job roles.
A UN Trade Development report from earlier this year predicted that by 2033, the global Artificial Intelligence market will be worth a staggering $4.8 trillion.
DISCOVER SBX CARS – The global premium auction platform powered by Supercar Blondie
Michael Burry appears to think the AI bubble is set to burst
However, despite the seemingly runaway success of AI technology, it seems that investor Michael Burry isn’t convinced.
In recent days, he has reportedly bet more than $1.1 billion on falls in the shares of chipmaker Nvidia and software company Palantir.
Sometimes, we see bubbles.
— Cassandra Unchained (@michaeljburry) October 31, 2025
Sometimes, there is something to do about it.
Sometimes, the only winning move is not to play. pic.twitter.com/xNBSvjGgvs
Appearing to suggest that he believes the artificial intelligence bubble may be set to burst, he posted an image of Bale in The Big Short alongside the caption:
“Sometimes, we see bubbles.
“Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
He then followed that up this week with a couple of posts sharing charts that showed a slowdown in demand for cloud computing and another titled:
“US tech capex [capital expenditure] growth is matching the tech bubble of 1999-2000.”
“Michael Burry has a history of making large bearish bets when he perceives there to be a bubble, most notably prior to the housing market crash of 2008,” Quiver Quantitative co-founder James Kardatzke told LBC.
“This new disclosure suggests that he now believes that there is an AI bubble, which is due to pop.”
But not everyone agrees with Burry’s prediction
Palantir CEO Alex Karp has hit back at Michael Burry’s decision to make ‘short’ bets against artificial intelligence.
“The two companies he’s shorting are the ones making all the money, which is super weird,” Karp told CNBC’s Squawk Box.
“The idea that chips and ontology are what you want to short is bats***crazy.”
“He’s actually putting a short on AI.
“It was us and Nvidia.”
His thoughts were mirrored by Roman Stanek, chief executive of artificial intelligence analytics group GoodData.
He told This Is Money companies that were ‘waiting for the bubble to pop, will wake up to find the world has moved on without them.’
DISCOVER SBX CARS: The global premium car auction platform powered by Supercar Blondie
Claire Reid is a journalist who hails from the UK but is now living in New Zealand. She began her career after graduating with a degree in Journalism from Liverpool John Moore’s University and has more than a decade of experience, writing for both local newspapers and national news sites. Claire covers a wide variety of topics, with a special focus on cars, technology, planes, cryptocurrency, and luxury.
