Popular American investor and 'Big Short' fame Michael Burry has been warning about an AI bubble since the beginning of the year, ramping up his bets against several AI bellwethers because he believes that the market is nearing a big crash as the AI bubble fizzles out.
Recently, Burry said that the market is currently in a 'denial' mood, a phase that could last six to nine months, as seen during the previous 2000 and 2008 crises. Michael Burry cited recent research from Ares Management that said it would take only a season in which AI revenue disappoints the massive capital expenditure that hyperscalers are putting behind it.
