Michael Burry Takes Position Against Oracle Amid AI Expansion
Investor Michael Burry, known for his role in the film “The Big Short,” is publicly betting against Oracle, a company recently focusing on artificial intelligence (AI) infrastructure. In a recent post on Substack, Burry disclosed that he has acquired put options on Oracle shares and has been shorting the stock for the past six months.
Burry has turned his attention to Oracle following earlier bearish bets against AI chipmaker Nvidia and Palantir Technologies, which he revealed last November. He expressed concerns about Oracle’s current trajectory, mentioning, “I do not like how it is positioned or the investments it is making. It did not need to do what it is doing, and I do not know why it is doing this. Maybe ego.”
Oracle has been rapidly growing its cloud computing services, which has led to a significant increase in debt; the company now owes around $95 billion. This makes it one of the largest corporate borrowers outside the financial sector, according to Bloomberg’s high-grade index. Recently, Oracle made headlines by signing a massive $300 billion cloud computing deal with OpenAI, led by Sam Altman, where OpenAI will start purchasing computing power from Oracle in 2027. While this deal is seen as a positive step for Oracle, it also introduces risks and financial pressures.
Since this news, Oracle’s stock has shown volatility. In September, shares surged 36% in a single day after a promising outlook for its cloud services, but these gains later diminished as investors became concerned about rising costs and debt from the data center expansion. As a result, Oracle’s shares were about 40% lower at the end of 2025 compared to their peak that September.
Regarding larger tech firms, Burry has chosen not to place bets against the likes of Google, Microsoft, and Meta. He cautioned that shorting these companies would involve betting against their overall market dominance. “If I short Meta, I’m also shorting its social media and advertising dominance,” he explained. He believes that while these companies may face challenges, particularly with spending and asset values, they will continue to hold strong in their core markets.
Interestingly, Burry mentioned he would consider betting against OpenAI if its valuation reached $500 billion, indicating skepticism about the speed of AI development and its economic viability. He also views Nvidia as a key focus for those looking to profit from the AI boom, stating that shorting Nvidia is comparatively less costly than other options due to its popularity and strong market position.
In summary, Burry’s stance showcases the complexities and risks involved in today’s rapidly evolving tech landscape, especially concerning AI and cloud infrastructure.
