Michael Burry, the canary in the coal mine of the Great Recession, who is now betting against AI

Barcelona"The real estate market is a ticking time bomb, and I want to bet against it." American director Adam McKay dramatized in the film The Big Short the 2007 housing bubble burst around a key figure: Michael Burry, the investor who bet everything against the US credit market, and fled the crisis with unprecedented gains. More than two decades after those warnings, Burry has chosen a new target: artificial intelligence.

After the housing bubble burst, Burry closed the hedge fund with which he made his bets, Scion Capital, after the controversy caused by his short position against the entire real estate market. Years later, he reopened it, then under the brand Scion Asset Management. In November 2025, his fund's investment report revealed significant short positions in some of the big tech companies favored by the artificial intelligence market.

A few weeks later, however, he closed it, alleging that "his investment strategy no longer fits the market," which was chaining episodes of unbridled euphoria driven by the main tech stocks. Nevertheless, he maintains his participation in the public forum through a more than popular Substack page, Cassandra Unchained, where he publishes his thoughts on the possible AI bubble, and explains his personal investments. In a post last week, Burry announced that he was doubling down, and "expanding his major shorts," which include Nvidia, Oracle, and Palantir.