‘Big Short’ Fame Michael Burry Says Trump ‘Cannot Afford’ To Let AI Boom Fall

Burry says the Trump administration cannot afford to let the AI investment boom falter, even as he remains skeptical of the sector’s spending and valuations.

• Burry said AI infrastructure has become a key pillar of the U.S. economy.
• Burry recently shorted Nvidia, Oracle, Palantir, Nebius, Micron and CoreWeave.
• The warning comes as Big Tech ramps AI spending and OpenAI and Anthropic move toward potential IPOs.

Michael Burry, one of the most prominent AI skeptics, believes the industry's health has become as critical to the U.S. government as it is to the companies driving the boom.

“The Big Short” investor said the Trump administration has little room to let the AI boom weaken, arguing that the AI infrastructure buildout has become a critical support for the economy even as he remains bearish on several companies at the center of the trade.

“Trump and his team know that the AI narrative and the buildout is the only thing keeping this economy going, and the most positive thing happening this year,” Burry wrote in a recent Substack chat. “They cannot afford to let it fall,” he added, while questioning what Washington could actually do to prevent a downturn.

Trump’s AI Push Raises The Stakes

Burry’s comments come as President Donald Trump has made U.S. leadership in AI a national and economic priority. His administration has pushed for faster AI adoption across government and national security, more domestic computing infrastructure, and continued U.S. leadership in AI over China. 

The White House has also emphasized accelerating access to advanced AI systems for the military and intelligence community.  

Burry, for one, has repeatedly challenged the AI investment narrative surrounding Nvidia, Microsoft, Amazon, Alphabet, Meta, OpenAI and Anthropic. He has argued that enormous capital spending might not necessarily translate into durable returns.  

According to the most recent disclosures, Trump made more than 1,000 trades in July, mostly in tech stocks. Trump sold $5 million to $25 million each in Microsoft and Amazon, then bought back smaller amounts of both. The president also traded Oracle (ORCL), Intuit (INTU), Marvell (MRVL), Salesforce (CRM), Meta Platforms (META), Nvidia (NVDA), ServiceNow (NOW), Workday (WDAY), and Adobe (ADBE). 

Burry Shorts Nvidia, Oracle, Palantir As AI Spending Surges

Burry recently disclosed short trades on Oracle, Palantir, Nebius, Nvidia, the iShares Semiconductor ETF, Micron, and CoreWeave, with Oracle, Palantir, and Nebius as his largest shorts in the latest ranking he provided.  

Among his consistent themes, Burry has questioned whether the AI investment cycle involving Nvidia chips, hyperscaler data centers and companies such as OpenAI and Anthropic can continue supporting the broader economy without eventually creating a financial meltdown.

“The U.S. government is in the worst position for fighting a financial crisis/debt crisis in modern history,” Burry wrote in his latest comment, adding that there are “very few arrows in the quiver” and that “just about all of them are very dull.”

The comment assumes greater significance against the backdrop of Big Tech firms continuing to pour record sums into new AI data centers, an unprecedented rally in chip and AI infrastructure stocks, and looming public listings from Anthropic and OpenAI that could rank among the largest the market has seen.

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