Michael Burry says he's shorting AI stars Oracle and Nebius

Michael Burry, the investor known for the 2008 book and film "The Big Short," has said he's shorting two companies betting heavily on the AI boom. Burry, writing on his Substack, noted that he shorted Oracle and Nebius after concluding his research for "The Heretic's Guide to AI's Stars." He explained that many AI companies are overextended, with high debt and ballooning liabilities, making them easy targets like fish in a barrel.

Oracle, in particular, has been criticized for its debt-fueled data center expansion, which has led to a 60% drop in its stock price after a massive surge earlier in the year. Nebius, another AI-focused company, has also been targeted, with Burry shorting it in a larger size at around $212 a share. Despite recent volatility, Nebius shares have more than doubled this year and roughly ninefold over the past two years. Oracle and Nebius did not immediately respond to Business Insider's requests for comment.