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Michael Burry Bets Against AI, Fears Imminent Crash

11/10/2025

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Story summary
  • Michael Burry is heavily shorting the AI sector, signaling a potential crash.
  • Analysts compare the AI bubble to past financial crises, citing AI's reliance on $1.2 trillion in mis-sold debt that could trigger a downturn.
  • Experts warn that AI's unreliability and diminishing returns on investment raise concerns about its long-term viability.
  • Because some financial leaders argue the market lacks the mania of previous bubbles, skepticism about AI's profitability grows.