"The Big Short" Burry: AI infrastructure has become a key pillar of the US economy; Trump cannot afford to let the AI boom fail

According to Golden Ten Data, Michael Burry, the investor renowned for accurately predicting the 2008 subprime mortgage crisis, stated that the success of the artificial intelligence (AI) sector is now just as crucial to the U.S. government as it is to the tech giants driving the current frenzy. The real-life inspiration for the movie "The Big Short" said that the Trump administration has virtually no room to let the AI boom cool down. He believes that although he still holds a bearish outlook on several core companies in AI trading, the construction of AI infrastructure has become a key pillar supporting the U.S. economy.

Reportedly, Burry wrote in a recent Substack chat: "Trump and his team know that the AI narrative and infrastructure development are the only forces sustaining this economic momentum—and the most positive development of the year." He added, "They can't afford to let it fall." Meanwhile, he also questioned what measures Washington can actually take to prevent the economy from slipping into recession.

Burry's move to short U.S. AI stocks began in the third quarter of 2025 with put options on Nvidia (NVDA.US) and Palantir (PLTR.US) with a notional value of about $1.1 billion. In 2026, he expanded this into a full-chain short position covering semiconductors, storage, and AI infrastructure, including bearish bets on Micron Technology (MU.US), Oracle (ORCL.US), Nebius (NBIS.US), and the iShares Semiconductor ETF (SOXX). He has repeatedly questioned the rationale for AI investments and believes that massive capital outlays may not necessarily translate into sustainable returns. In addition, revolving financing, overstating GPU depreciation periods, and off-balance-sheet liabilities are all "pillars" of Burry's short positions in U.S. AI stocks.