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The Economic Times
The Economic Times
National
Piyush Shukla

Michael Burry’s AI crash warning grows louder: Is Nvidia-driven hype and record venture capital funding pushing Wall Street toward another dot-com disaster?

Michael Burry sounds fresh AI stock alarm: The artificial intelligence boom has created extraordinary wealth, revived stock markets, and pushed technology companies into another era of historic valuations. Yet amid the excitement surrounding artificial intelligence, legendary investor Michael Burry is sounding an alarm that many investors no longer want to hear. The hedge fund manager who famously predicted the 2008 housing collapse now believes the AI debt frenzy is beginning to mirror the dangerous excesses of the dot-com bubble.

Burry’s warning arrives at a moment when artificial intelligence dominates nearly every major investment conversation on Wall Street. Venture capital firms are aggressively funding AI startups, corporations are borrowing billions for data centers, and markets continue rewarding companies tied to machine learning, generative AI, and enterprise automation. According to figures cited by Burry from Apollo Global Management chief economist Torsten Slok, roughly 87% of venture capital funding is now flowing into AI companies.

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