Michael Burry launches newsletter to lay out his AI bubble views

Michael Burry, famed for predicting the 2008 housing crisis, has launched a Substack newsletter, “Cassandra Unchained,” following the deregistration of his hedge fund. With an annual subscription of $379, Burry aims to elaborate on his increasingly bearish outlook on artificial intelligence, targeting his 1.6 million followers on X, who have long followed his cryptic market observations.

Burry draws parallels between the late-1990s tech boom and today’s AI frenzy, warning that markets are again in bubble territory. He recalls then-Fed Chair Alan Greenspan dismissing housing bubble concerns in 2005, just two years before the subprime collapse confirmed his “Big Short” thesis. Burry sees history repeating, as investors pour money into AI companies, often ignoring profitability issues while betting on exponential growth and transformative potential.

He criticized current Fed Chair Jerome Powell’s recent statements suggesting AI companies are “actually profitable” and “a different thing” from past bubbles, noting the similarity to Greenspan’s assurances. Burry has openly expressed skepticism toward AI leaders like Nvidia and Palantir, signaling caution in a market he believes is overvalued, much like the dot-com era he famously shorted.