America’s biggest investor Michael Burry not happy with Oracle & Micron, here's why

America’s biggest investor Michael Burry who famous for warning about the 2008 housing crisis has taken aim at two major technology players Oracle and Micron Technology. According to a report by The Street, known for his contrarian bets, Burry argues that both companies are overexposed to the artificial intelligence infrastructure boom and weighed down by financial commitments that could backfire if demand slows.Michael Burry’s concerns about OracleAs per the report, Burry disclosed a short position against Oracle, highlighting its massive spending on AI infrastructure. The company has signed long-term leases and GPU capacity contracts worth hundreds of billions, far exceeding its current revenue base. Despite the strong operating cash flow, Oracle reported negative free cash flow due to surging capital expenditures. Burry warns that if AI demand falters, Oracle could be left with costly obligations and declining returns.The AI hype problem of MicronMicron Technology is also in Burry’s crosshairs. He expanded his short bet against the chipmaker, arguing its recent rally is driven more by investor enthusiasm for AI than by solid fundamentals. Micron has historically struggled with cyclical downturns, and Burry believes its profitability remains vulnerable despite the current boom.Burry’s bearish stance extends beyond individual companies. He has also shorted the iShares Semiconductor ETF and Nebius Group, signaling broader doubts about the sustainability of AI-linked stocks. His thesis centers on off-balance-sheet liabilities: companies committing billions to long-term infrastructure at inflated prices, which could become burdensome if growth slows.Michael Burry is not happy with reports of Nvidia investing $250 billion in OpenAIRecently, Michael Burry voiced his sharp criticism of reports that Nvidia is preparing a a $250 billion backstop for OpenAI’s massive Ohio data-center project. According to a report by the Wall Street journal, the guarantees would help OpenAI lease a 10-gigawatt site being developed by SoftBank’s SB Energy, with total costs potentially exceeding $500 billion. Burry’s complaint echoes what analysts have long warned about in AI megadeals: circular funding arrangements that expose investors to enormous risk if sentiment shifts or growth slows. Nvidia, already valued at $5 trillion, has invested $30 billion in OpenAI and is now considering financing chip purchases worth another $350 billion. Critics say such structures could leave the industry vulnerable, especially since OpenAI remains unprofitable and lacks an investment-grade credit rating.Michael Burry’s criticism underscores growing unease about the sustainability of $100 billion-plus AI financing structures. His warning suggests that while AI demand is surging, the industry’s reliance on complex guarantees and debt-backed megaprojects could become its biggest vulnerability.