TLDR
- Michael Burry says the Trump administration cannot afford to let the AI boom slow down.
- Burry argues the AI buildout is now the main thing propping up the U.S. economy.
- Trump says he opposes slowing AI development despite possible risks.
- Burry has shorted Nvidia, Oracle, Palantir, Micron, CoreWeave, and Nebius.
- Trump’s July trading disclosures show heavy activity in tech stocks including Microsoft and Amazon.
Michael Burry, the investor known for predicting the 2008 housing crash, says the AI boom has become too important for the U.S. government to let fail. He made the comments in a recent Substack post.
Burry said the Trump administration sees the AI buildout as the main force holding up the economy right now. He believes this leaves the government very little room to let AI investment slow down.
“They cannot afford to let it fall,” Burry wrote, according to Stocktwits. He also questioned what tools Washington could realistically use to stop a downturn if one began.
Burry’s Bets Against AI Companies
Burry has taken short positions against several major AI-linked companies. These include Nvidia, Oracle, Palantir, Micron, CoreWeave, and Nebius.
Breaking: Michael Burry drops a new warning on the AI financing web
Here’s what he’s flagging:
1. Ares Management mapped $573B across 26 financings tying together Meta, Oracle, Microsoft, Amazon, Google, Nvidia, OpenAI and Anthropic
2. Every guarantee and backstop in the web… pic.twitter.com/XEeEA3TAnl
— Michael Burry Stock Tracker ♟ (@burrytracker) September 28, 2026
He has been building these positions gradually since the third quarter of 2025. His main argument is that heavy spending on AI infrastructure may not lead to steady long-term returns.
Burry has questioned the broader AI investment story more than once. He says capital spending on data centers and chips is massive, but the payoff is not guaranteed.
He also believes the U.S. government is poorly positioned to handle a financial downturn right now. Burry says policymakers have fewer tools available than in past crises.
Trump’s Position on AI Development
President Trump has said he will not slow down AI development. He argues that keeping the U.S. ahead in AI technology matters more than managing potential risks.
Trump has described the AI industry as one that could be worth trillions of dollars. He has said he is not willing to hold back the sector over safety concerns.
This stance lines up with Burry’s view that the administration has no real alternative but to keep supporting the AI trade. Burry frames this as a lack of choice rather than confidence.
Trump’s own financial disclosures show he has been active in tech stocks. His most recent filings cover trading activity from July.
According to those disclosures, Trump made more than 1,000 trades that month. Most of the trades involved technology companies.
He sold between five million and twenty five million dollars each in Microsoft and Amazon. He then bought back smaller amounts of both stocks shortly after.
Trump also traded shares in Oracle, Intuit, Marvell, and Salesforce. His disclosed trades included Meta Platforms, Nvidia, ServiceNow, Workday, and Adobe.
Burry believes the government now has a direct stake in keeping the AI narrative alive. If the sector weakens, he argues the broader economy would feel it quickly.
Burry has not said when he expects a slowdown to happen. His comments so far focus on the risk building up rather than a set timeline.
Both Trump and Burry agree the AI boom has become central to how the U.S. economy is performing this year. They draw very different conclusions from that fact.
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