Michael Burry — the famed investor who predicted the 2008 housing market crash — has launched a premium Substack newsletter after officially deregistering his hedge fund. The “Big Short” investor says the publication will outline his increasingly bearish outlook on what he believes is a rapidly inflating artificial intelligence bubble.
Burry, who has amassed 1.6 million followers on X, has long been known for his cryptic posts and warnings about overheated markets. His new newsletter, titled “Cassandra Unchained,” is priced at $379 per year and revives the same cautionary messaging that made him widely followed before the 2008 financial crisis.
Burry Draws Parallels Between AI Mania and the Dot-Com Bubble
In announcing the launch, Burry highlighted striking similarities between the current excitement around AI and the tech frenzy of the late 1990s. He pointed to examples of policymakers downplaying risk during past bubbles — only for markets to collapse later.
“I doubted if I ever should come back. I’m back. Please join me,”
Burry wrote in a post on X, referencing historical dismissals of bubble concerns from former Fed Chair Alan Greenspan in 2005 and comments from current Fed Chair Jerome Powell on AI valuations.
Burry reminded followers that Greenspan insisted U.S. housing prices were not in a bubble just two years before the subprime market imploded — validating Burry’s legendary “Big Short” bet.
Warning Signs: Exponential Growth Narratives and Sky-High AI Valuations
Burry argues that today’s AI boom is exhibiting the same speculative behavior as the dot-com era:
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Investors are projecting unlimited exponential growth
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Profitability concerns are being ignored
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Companies are spending massive amounts on capital-intensive AI infrastructure
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Market valuations are disconnected from long-term fundamentals
Federal Reserve Chair Jerome Powell recently dismissed concerns that AI stocks are in bubble territory, saying leading AI companies are “actually profitable” and not comparable to past hype cycles. Burry disagrees, calling Powell’s tone eerily similar to Greenspan’s before the housing crisis.
Burry Is Targeting AI Giants Like Nvidia and Palantir
Just as he publicly shorted Amazon in 2000 during the dot-com boom, Burry has been openly critical of the biggest winners of the AI wave — including Nvidia and Palantir. He believes the market is dramatically overestimating the speed and scale at which AI will transform the economy.
With his new newsletter, Burry says he will break down his thesis for paying subscribers and explain why he thinks the AI boom may be headed for the same fate as previous tech bubbles.
