Michael Burry, the investor known for his role in The Big Short, recently argued that a stock market crash would benefit humanity by preventing OpenAI and Anthropic from going public. He claims these companies threaten to drain and destroy trillions of dollars in capital, posing risks beyond financial loss.
The potential IPOs of these AI firms are driven by the need for massive funding to develop advanced models and build necessary computing infrastructure. While OpenAI CEO Sam Altman stated that an IPO by 2026 would be unwise due to safety concerns, reports suggest Anthropic may pursue a public offering following the mid-term elections in November.
Burry has accelerated his bearish stance on the AI sector, now expecting his predictions to materialize within the next year, rather than by 2028. He has increased his short positions against companies including Nvidia, Palantir, Micron, and Oracle, as well as the Nasdaq 100 index.
His skepticism centers on the sustainability of debt-fueled spending on chips and data centers. Burry warns that this expenditure is highly vulnerable to rising interest rates and could collapse if the current pace of investment slows down, despite the record highs seen in AI-related stocks this year.
