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When Michael Burry speaks, Wall Street usually listens. The investor made famous by “The Big Short” has once again stirred the pot, and this time questioning whether the artificial intelligence (AI) boom is starting to look a little too expensive. His concern is the sheer scale of data center spending and the effect it is having on cash flow, balance sheets, and reported earnings.
Burry has openly challenged heavyweights like Oracle Corporation (ORCL), Alphabet (GOOGL), and Caterpillar (CAT), asking when does this AI infrastructure spending actually end? He argues companies are borrowing aggressively and potentially stretching accounting to soften the blow of soaring capital expenditures.