Michael Burry opens short positions in Nebius and Oracle, betting against AI infrastructure boom

Michael Burry, the investor immortalized in “The Big Short” for calling the 2008 housing crisis before basically anyone else, is placing fresh bets against two companies riding the AI infrastructure wave. He has taken short positions targeting Oracle and Nebius Group, signaling deep skepticism about the financial foundations underpinning the AI boom. His thesis boils down to something deceptively simple: these companies aren’t depreciating their GPUs fast enough, and that’s making their earnings look better than they actually are. In English, imagine buying a car, pretending it holds its value for ten years, and using that fiction to inflate your net worth. Now do that with billions of dollars worth of AI chips. The GPU depreciation problem Burry has been vocal about what he sees as a systemic issue across AI hyperscalers. He estimates that Oracle’s earnings could be overstated by approximately 26-27% by 2028 due to undervalued GPU depreciation. That’s not a rounding error. That’s the kind of gap that turns profitable quarters into mediocre ones. He has taken put options on Oracle shares, after shorting the stock in recent months. Put options give the holder the right to sell share...