Investor Michael Burry, known for his role in The Big Short, recently stated that a significant market downturn would be beneficial for humanity if it prevented OpenAI and Anthropic from going public. Burry argues that these companies could absorb trillions of dollars in capital, leading to potential long-term economic damage.
OpenAI CEO Sam Altman has previously noted that an IPO by 2026 would not be advisable due to AI safety concerns. Meanwhile, reports suggest that Anthropic may pursue a public listing following the US midterm elections in November. Both companies require substantial funding to develop advanced AI models and infrastructure.
Burry has revised his outlook, now expecting his bearish stance on the AI sector to materialize within the next year, rather than by 2028. Consequently, he has adjusted his short positions against companies including Nvidia, Palantir, Micron Technology, Oracle, and the Nasdaq 100 index.
According to Burry, the current reliance on debt to fund chip manufacturing and data center expansion is unsustainable and vulnerable to interest rate hikes. He warns that a slowdown in spending could cause the entire system to collapse, despite AI stocks currently reaching record highs.
