Michael Burry Withdraws from Markets: The New Bet Against Silicon Valley

WalletsWatcher · 2026-02-09T04:10:27+00:00

Michael Burry, who predicted the 2008 collapse, has decided to close his public fund in November 2025 and is betting against Palantir, anticipating a significant decline. His criticism focuses on the discrepancy between investments in AI and actual revenue growth, warning about accounting distortions that may be hidden until 2028, echoing the previous crisis.

WalletsWatcher

2026-02-09 04:10:27

Abstract generation in progress

The investor who predicted the 2008 collapse has just made an unprecedented decision: to completely withdraw from public fund management in November 2025. Michael Burry didn’t just sell positions; he executed an asymmetric strategy that reflects his deep concern about the current tech sector.

Michael Burry’s strategy against Palantir’s euphoria

Michael Burry took approximately 50,000 put option contracts, betting on a significant decline in Palantir. The numbers from his analysis are compelling: while Palantir trades at $184, Burry identified a target value of $50, representing a potential return of 2,600% if his prediction comes true.

This strategy is not simply a short-term bet. According to his analysis, major tech companies invested over $200 billion in AI infrastructure during 2025, but actual revenue growth does not exceed 20%. This disproportion between investment and financial return is the core of his concern.

Worrying parallels with 2008 and the Enron model

The comparison that Michael Burry makes between the current bubble and the 2008 crisis is specific: he identifies approximately $176 billion in accounting distortions that could remain hidden until 2028. He describes the current model as “subprime CDO with a silicon mask”: supposedly revolutionary assets that hide fundamental mathematical vulnerabilities.

NVIDIA, in his analysis, would be burning cash on chips that will depreciate in 10 years, while energy costs associated with AI infrastructure would be enough to power entire regions.

The withdrawal as a final message

The most significant act was not the bet itself, but the complete delisting of his fund in November 2025. Michael Burry repeated the pattern he executed in 2008: disappearing from regulatory scrutiny just when his predictions are poised to validate.

In 2008, he made $100 million but nearly lost his emotional stability watching his predictions come true. This time, according to his communication, he will not remain a passive observer of the market. Michael Burry’s final warning comes not in the form of detailed analysis, but through concrete actions: established positions, delisted fund, and a silence that speaks for itself.

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