Summary
- Michael Burry has recently consistently warned about the possibility of a bubble collapse in artificial intelligence (AI) companies.
- He contrasted remarks by Powell, chair of the U.S. central bank, and former Chair Greenspan, emphasizing the current possibility of an AI bubble.
- He recently disclosed short positions on Nvidia and Palantir.
Michael Burry, the real-life protagonist of the movie 'The Big Short', continued to warn about a bubble collapse related to artificial intelligence (AI) companies.
In a post on X (formerly Twitter) on the 24th (local time), he contrasted remarks by Jerome Powell, chair of the U.S. central bank (Fed), with comments by former Fed chair Alan Greenspan before the past subprime mortgage (subprime home loan) crisis. Burry wrote, "Greenspan said in 2005 'house prices do not appear to be in a bubble', and Powell said 'AI companies are actually making profits, so the situation is different (from the 2000 'dot-com bubble')'."
By contrasting Powell, who dismissed the AI bubble theory, with former chair Greenspan, it is interpreted as an attempt to actively bolster the claim that the AI bubble will burst this time as well. Burry then wrote, "I had doubts about whether I could come back, but I came back," announcing the start of his paid newsletter 'Cassandra Unchained'. Cassandra is interpreted as the oracle in Greek mythology who foretold the 'Trojan Horse', implying that his predictions are accurate but people do not believe them.
Burry has continued to issue warnings about overheated AI investment recently. Recently, he also disclosed short positions on Nvidia and Palantir.
Kim Dong-hyun Reporter 3code@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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