AI Investment Craze Compared to the 1990s Dot-Com Bubble
Greenspan’s “No Housing Bubble” Remarks Before the Financial Crisis Revisited
Powell’s “AI Companies Are Profitable” Statement Raises D?j? Vu Warning
Michael Burry, the real-life figure portrayed in the movie "The Big Short" and the investor who predicted the 2008 global financial crisis, has once again issued a warning about an artificial intelligence (AI) bubble. He referenced former Federal Reserve Chairman Alan Greenspan’s remarks-made just two years before the subprime mortgage crisis erupted-claiming there was no bubble in housing prices at the time. Burry pointed out that the current optimism surrounding AI investments could lead to a repeat of the financial turmoil seen back then, like a d?j? vu.
Michael Burry, the real-life figure portrayed in the movie "The Big Short" and the investor who predicted the 2008 global financial crisis. Michael Burry's social networking service (SNS) is X (formerly Twitter).
On November 24 (local time), Burry launched a new platform called "Cassandra Unchained" on the paid newsletter service Substack to publicly share his pessimistic outlook on the overheated AI market.
He stated, "I have not retired," and added, "I am fully focused on this platform." The platform currently has 21,000 subscribers, and the monthly subscription fee is $39.
In a post on the platform, Burry compared the current AI boom to the dot-com bubble of 1999. He argued that, just as the IT bubble burst in 2000, the current wave of AI investment also has all the hallmarks of a bubble.
The previous day, Burry also warned of the risks of an AI bubble in a post on his social networking service (SNS) X (formerly Twitter).
Burry recalled, "On February 21, 2000, the San Francisco Chronicle reported that I was shorting Amazon stock." This was right before the dot-com bubble burst; following that report, Amazon’s share price plummeted by about 90% to its low in September 2001.
Burry further stated, "Greenspan said in 2005 that housing prices did not appear to be in a bubble," and added, "Powell (Federal Reserve Chairman Jerome Powell) said in 2025, 'AI companies are actually profitable. That’s a different matter.'"
He reminded readers that just two years after former Chairman Greenspan denied the existence of a housing bubble, the subprime mortgage crisis erupted. By quoting Chairman Powell’s recent remarks, Burry appeared to be warning that history could repeat itself. Previously, Powell commented at a press conference in October that "it is different in that companies with very high valuations are actually making profits," which was interpreted as suggesting that the AI investment boom is not overheated.
Burry declared, "I wasn’t sure I would return, but I have," and urged, "Join me."
He has recently issued a series of warnings about the overheating of AI investments. Burry pointed out that big tech companies are going all-in on AI-driven growth, continuing massive capital expenditures while ignoring concerns about profitability. Recently, he also disclosed short positions on Nvidia and Palantir.
Burry is well known for having predicted the collapse of the U.S. subprime mortgage market before the 2008 global financial crisis, earning substantial profits as a result.
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