Michael Burry Warns Again: The $9.2M Strategy Against the AI Bubble

Michael Burry, the man who predicted the 2008 crisis while Wall Street was laughing, has just executed a financial move that has no precedent in modern markets. It’s not just another speculative bet, but a calculation that reveals how the investor views the future of the tech sector.

The analyst who made $100 million during the investment bank collapse now disappears from regulatory oversight exactly as he did 18 years ago. His fund was officially deregistered, leaving behind an investment that speaks for itself: $9.2 million invested in the right to collect $240 million when certain assets fall. That represents a potential return of 2,600%.

The Most Asymmetric Position in the Market

Michael Burry’s strategy is not complex in theory, but its implications are everything. He acquired 50,000 put option contracts on Palantir, a company trading at $184 that he values at $50. Meanwhile, Palantir has experienced gains of 449 times since its inception. The question the market doesn’t ask itself: is it sustainable?

The numbers suggest not. NVIDIA, considered one of the pillars of the artificial intelligence revolution, faces a different scenario than most imagined. The company is burning billions on infrastructure that will depreciate significantly in the coming years. The chips that today generate record profits will be obsolete tomorrow, losing much of their value in a decade.

Palantir and NVIDIA: The Mirage of Gains

What few analyze is the fundamental imbalance between investment and return across the entire sector. Big tech companies invested $200 billion solely in AI infrastructure during 2025, but the resulting revenue growth was less than 20%. That’s equivalent to spending $200 to earn just $40 in new revenue.

Burry sees this as a repeat of the schemes that collapsed years ago. The subprime CDOs, those financial instruments that supposedly reduced risk but concentrated most of the exposure, had the same logical structure: heavy initial investment, promises of exponential returns, and accounting that concealed the true risk.

The Accounting That Hides the Crisis

The energy costs associated with AI infrastructure are enough to power entire nations. The depreciation recorded in accounting books does not reflect operational reality. All of this is kept under control through accounting techniques that extend depreciation periods until 2028, creating a temporary illusion of profitability.

Michael Burry documented these irregularities and then executed his withdrawal move. He presented his investment in put options, deregistered his fund, and withdrew from regulatory oversight. There are no press conferences, no explanations. Just a cryptic post: “November 25.” Something was triggered that day.

When Michael Burry Withdraws from the Markets

The most significant thing is that Burry no longer manages other people’s money. He’s no longer playing for short-term gains or market validation. He made the bet, confirmed his instructions, stepped away from the table, and waits. The silence of someone who used to obsessively explain his theses says more than any argument.

Palantir’s CEO called him crazy. Burry remained silent, without responding. No defense. No need for explanation.

2008 Repeats, But This Time with Silicon

The last time Michael Burry withdrew from the markets, it took 18 months for his prediction to prove correct. He made $100 million and nearly lost his mind watching the crisis unfold in real time. This time, his move says he’s not waiting to see. He made his bet and left.

The man who warned about the housing collapse now warns about the sick fundamentals of the artificial intelligence sector. The numbers are clear: massive investments generating disproportionate returns to spending, stretched accounting to the legal limit, accelerated depreciation that will dampen future profits, and a speculative bubble that has already accumulated 173% gains in recent years.

The question is not whether Michael Burry will be right. The question is when.