Michael Burry launches paywalled Substack after de-registering his hedge fund
“The Big Short” investor Michael Burry just launched a new Substack called Cassandra Unchained, after recently de-registering Scion Asset Management from the SEC. One of his first posts takes aim at Nvidia and the topic of the wider AI “bubble.”
Earlier this month, Burry teased on X that he’d be “on to much better things” on November 25. Exactly where his Substack — which he unveiled last night with letters recalling his past warnings, from shorting Amazon in 2000 to Greenspan brushing off a housing bubble in 2005 — fits into that remains to be seen.
The post getting the most attention so far lays out why he sees the AI boom as a bubble rooted in “supply-side gluttony,” Business Insider reports. Burry argues that today’s AI cycle mirrors the dot-com period, when markets were also led by highly profitable giants — the so-called “Four Horsemen” (Microsoft, Intel, Dell, Cisco). The problem back then, according to Burry, was “catastrophically overbuilt supply and nowhere near enough demand,” a dynamic that’s “just not so different this time,” with Microsoft, Google, Meta, Amazon, and Oracle, plus startups like OpenAI, driving massive build-outs that may outstrip real demand.
Burry singles out Nvidia as the modern Cisco, the company at the center of the 2000 dot-com bubble that eventually plunged 78% in the crash. In a recent X post, he also separately accused major tech firms of understating depreciation on their computing hardware, saying it “artificially boosts earnings.”
Earlier this month, Burry teased on X that he’d be “on to much better things” on November 25. Exactly where his Substack — which he unveiled last night with letters recalling his past warnings, from shorting Amazon in 2000 to Greenspan brushing off a housing bubble in 2005 — fits into that remains to be seen.
The post getting the most attention so far lays out why he sees the AI boom as a bubble rooted in “supply-side gluttony,” Business Insider reports. Burry argues that today’s AI cycle mirrors the dot-com period, when markets were also led by highly profitable giants — the so-called “Four Horsemen” (Microsoft, Intel, Dell, Cisco). The problem back then, according to Burry, was “catastrophically overbuilt supply and nowhere near enough demand,” a dynamic that’s “just not so different this time,” with Microsoft, Google, Meta, Amazon, and Oracle, plus startups like OpenAI, driving massive build-outs that may outstrip real demand.
Burry singles out Nvidia as the modern Cisco, the company at the center of the 2000 dot-com bubble that eventually plunged 78% in the crash. In a recent X post, he also separately accused major tech firms of understating depreciation on their computing hardware, saying it “artificially boosts earnings.”
