www.marketwatch.com
Michael Burry, the investor featured in “The Big Short,” remains skeptical about the current AI boom. He argues that the massive infrastructure spending by tech giants resembles the speculative excesses of past bubbles. Burry believes this investment is a “race to the bottom” that will eventually lead to commoditization and a price war.
He specifically predicts that dominant AI hardware and software providers, like Nvidia and Palantir, will not maintain their top positions. Burry warns that as AI becomes a utility, margins will collapse, and early leaders will lose their competitive edge. He essentially views the AI frenzy as a bubble poised to burst once the economics no longer justify the hype.
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