"The Big Short"’s Michael Burry is firing again. This time, he has told the market it should fall sharply, to stop the IPOs of OpenAI and Anthropic. His rationale is very straightforward: these companies will siphon off tens of trillions of dollars, and AI infrastructure spending is even more frightening. In Anthropic’s prospectus, it says it plans to invest $51.8 billion over the next few years, and last year its net loss was nearly $42 billion.
This veteran who made his name in 2008 by shorting subprime mortgages has recently been repeatedly warning about an AI bubble. He’s now betting on a reversal around next summer from both sides—shorting stocks and buying put options.
For crypto, it’s two sides of the same coin. Over the past two years, the AI narrative has been crypto’s toughest line. From AI agents to all kinds of token concepts related to AI, everything has been driven by the same expectation. The higher the valuations of AI companies and the fuller the story, the greater the imagination space for crypto on that side. But once the AI equity bubble is punctured, risk appetite is the first thing that gets hit. Crypto’s AI track will be tested in tandem, and even the broader altcoin sentiment will have to shake.
But from another angle, the more Burry goes bearish, the more AI is pushed to the forefront—and in the long run, it may actually help extend the life of this cross-narrative. Bubble talk isn’t a buy-or-sell instruction; it’s more like an emotional thermometer, telling you how much of your position is staked on the story of "AI will always go up." What you really need to guard against is boosting leverage to the max when the story is at its fullest. Whether Burry’s bearishness is right is something time will decide.
This veteran who made his name in 2008 by shorting subprime mortgages has recently been repeatedly warning about an AI bubble. He’s now betting on a reversal around next summer from both sides—shorting stocks and buying put options.
For crypto, it’s two sides of the same coin. Over the past two years, the AI narrative has been crypto’s toughest line. From AI agents to all kinds of token concepts related to AI, everything has been driven by the same expectation. The higher the valuations of AI companies and the fuller the story, the greater the imagination space for crypto on that side. But once the AI equity bubble is punctured, risk appetite is the first thing that gets hit. Crypto’s AI track will be tested in tandem, and even the broader altcoin sentiment will have to shake.
But from another angle, the more Burry goes bearish, the more AI is pushed to the forefront—and in the long run, it may actually help extend the life of this cross-narrative. Bubble talk isn’t a buy-or-sell instruction; it’s more like an emotional thermometer, telling you how much of your position is staked on the story of "AI will always go up." What you really need to guard against is boosting leverage to the max when the story is at its fullest. Whether Burry’s bearishness is right is something time will decide.