The Big Short Returns: Michael Burry Bets $1 Billion Against Nvidia and the AI Boom—And Why the Internet is Loving It

Michael Burry, the legendary investor who famously predicted the 2008 housing market crash, has placed a massive, high-stakes wager against the artificial intelligence sector. According to regulatory filings released in mid-November 2025, Burry’s Scion Asset Management has purchased put options with a notional value of over $1.1 billion against two of the industry's poster children: Nvidia and Palantir.


The move has sent shockwaves through Wall Street and ignited a firestorm of approval across social media and financial forums. While betting against the market's biggest winners is a dangerous game, Burry’s audacious re-entry into the spotlight has captivated a growing audience of skeptics who believe the AI "bubble" is finally ready to burst.


The Bet: Shorting the "AI Bubble"
Burry’s filings reveal a concentrated, aggressive bearish position. His fund held put options—contracts that profit if a stock price falls—against roughly 1 million shares of Nvidia and 5 million shares of Palantir.

This isn't just a hedge; it is a declaration of war on the current market narrative. Burry has returned to X (formerly Twitter) after a long hiatus to post cryptic warnings, including charts comparing the current AI investment cycle to the dot-com bubble of 2000.

His core thesis appears to rest on three pillars:

"Circular Financing": Burry has highlighted concerns that Big Tech revenue is being artificially inflated. He argues that tech giants are investing in AI startups, which then immediately use that cash to buy cloud services or chips from the same tech giants—creating a "round-tripping" revenue loop that mimics genuine demand.


Unsustainable Capex: He points to the historic gap between capital expenditures (spending on data centers and chips) and actual revenue generation from AI products, suggesting the return on investment (ROI) simply isn't there.

Accounting Gimmicks: In deleted posts, Burry has questioned the depreciation schedules used by hyperscalers, arguing they are understating costs to make profits look better.

Why People Are "Loving It"
Betting against Nvidia, a company that recently hit a $5 trillion valuation, might seem like financial suicide. Yet, the public reaction has been overwhelmingly fascinated, bordering on celebratory. Here is why Burry’s move is resonating so deeply:

1. The "Emperor Has No Clothes" Moment For months, retail investors and analysts have whispered that AI valuations are detached from reality. Burry—a figure with pop-culture status thanks to The Big Short—gives credibility to this skepticism. His bet validates the feeling held by many that the market has become "irrational" and "frothy."

2. The Anti-Hero Narrative Burry is viewed as the ultimate outsider—the "Cassandra" who sees the disaster everyone else ignores. In a market dominated by passive investing and cheerleading analysts, his willingness to stand alone against the crowd makes for compelling drama. His use of memes (referencing Star Wars and WarGames) has only endeared him further to the online investing community.


3. "Vindication" for the Bears Many investors who missed the Nvidia rally or sold too early have been waiting for a signal that the top is in. Burry’s entry provides a rallying cry for the bears. As one viral comment noted, "Finally, someone with skin in the game is calling out the absurdity."

4. The "Mic Drop" Exit Adding to the intrigue, reports indicate that after placing these massive bets, Burry has deregistered his firm from SEC reporting status, hinting at a move to go private or launch a new, secretive venture. This "mic drop" moment—placing a billion-dollar bet and then disappearing into the shadows—has only added to the mystique and excitement surrounding his position.

While Wall Street analysts continue to issue "Buy" ratings on Nvidia, Michael Burry has formally taken the other side of the trade. Whether he is early, wrong, or once again the only one who sees the cliff edge approaching, the financial world is glued to the spectacle.