Michael Burry Identifies Danger in the AI Market – and Begins Betting Against It

Investor Michael Burry, who predicted the 2008 housing market crash, has purchased put options against AI companies Micron and Nebius, betting on a decline of more than 50% in their shares. Burry identifies a gap between the real risk and current market pricing, and fears a slowdown in big tech spending on chips and infrastructure.

Legendary investor Michael Burry, famous for 'The Big Short' in which he predicted the 2008 subprime market crash, now identifies a new bubble in the artificial intelligence market and is shortening his timelines. At the end of September 2026, Burry updated his investment portfolio and purchased leveraged put options against chip company Micron and cloud computing company Nebius, expiring in June 2027. The options reflect a bet on a decline of more than 50% in their shares. Burry believes the market is underpricing the risk of a slowdown in capital expenditures by big tech companies, and that any small disappointment could lead to a rapid change in direction. Micron's profits rely on high demand for memory chips for data centers, but a slowdown in demand or increased production in China could hurt pricing. Nebius, which builds data centers, will struggle to maintain profitability if demand falls and it is forced to compete with big tech companies without real differentiation. Burry may close the positions early if the market moves in the direction he predicted.