Michael Burry launches newsletter to lay out his AI bubble views after deregistering hedge fund

Michael Burry, the famed investor known for predicting the housing crash before 2008, has recently made headlines by launching a Substack newsletter. This move comes after he deregistered his hedge fund, with the goal of sharing his bearish views on artificial intelligence in detail.

Burry, who gained notoriety for his portrayal in the film “The Big Short,” has amassed a large following on social media platform X, where 1.6 million followers have been dissecting his enigmatic posts for quite some time. His new newsletter, titled “Cassandra Unchained,” comes with a subscription fee of $379 per year and serves as a platform for him to warn about what he believes is another bubble in the market.

In his announcement, Burry drew parallels between the tech bubble of the late 1990s and the current frenzy surrounding artificial intelligence. He criticized policymakers for ignoring the signs of a bubble, just as they did before the housing crash in 2008.

Burry referenced past statements from figures like former Fed Chair Alan Greenspan and current Chair Jerome Powell to support his argument. Greenspan famously denied the existence of a housing bubble in 2005, just before the subprime mortgage crisis unfolded. Powell, on the other hand, has downplayed concerns about the AI market, claiming that AI companies are profitable and different from past bubbles.

Burry expressed skepticism about the current state of AI companies, noting that investors are overly optimistic about their growth potential and profitability. He has openly criticized companies like Nvidia and Palantir, which are considered leaders in the AI industry.

This latest venture from Burry signifies his return to the spotlight as a contrarian voice in the financial world. By leveraging his large following and launching a paid newsletter, he aims to provide in-depth analysis and insights into the risks he sees in the market. It remains to be seen how his predictions will play out and whether investors will heed his warnings about the potential AI bubble.