Burry compared this structure to the financing that led to the 2000 telecom bubble and believes the current stock market is in a stage of 'denial.' He noted that this phase historically lasts 6 to 9 months, as observed during the 2000 and 2008 crises, and argues the 'mother of all crashes' is imminent despite the S&P 500 reaching new all time highs.
Tuesday, October 20, 2026
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Michael Burry Warns $573B AI Finance Loop Mirrors 2000 Bust
US Markets14 days ago
A network of eight technology firms is using cross company loans and debt guarantees to sustain the current AI expansion, according to Michael Burry. Citing a report from lender Ares, Burry stated that $573B in financing over the last 12 months flows between Meta, Nvidia, Oracle, Microsoft, Amazon, OpenAI, Anthropic, and Broadcom. He warns that these firms buy from and back one another in a circular financing cycle that depends entirely on AI spending remaining constant.
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