In an X post on Monday, professional investor Michael Burry said that “almost all AI companies will go bankrupt”, in response to a thread in which Barron’s senior writer Tae Kim laid out the future of the AI sector.
In his post, Tae Kim paints a picture in which will NVIDIA will continue to post record-setting quarterly performance and continue to upgrade its AI chips at a rapid pace. He goes on to say in the thread that NVIDIA’s product cycles will be one of “the largest cycles in technology history”.
Kim also predicts that the majority of search queries will be handled by AI chatbots in the future, with Google set to lose its position as the no 1 search platform, a status it has held for more than two decades.
On his handle, Kim calls himself a “Truth Teller” and a “Former Bloomberg Opinion tech columnist”
“Agreed. And still, return on investment will continue to fall, almost all AI companies will go bankrupt, and much of the AI spending will be written off. Will it be the Panic of 2026? 2027? Does not have to be,” said Burry in response to the thread.
Burry has been bearish on the AI market before, criticizing it in its past X posts, mainly citing issues such as improper revenue recognition and a general lack of accounting fundamentals. He has also said that “true-end demand” for the sector is quite small.
In November last year, Michael Burry placed bets amounting $1 billion in put options against NVIDIA and Palantir. However, he promptly closed his hedge fund after, expressing discomfort with current market conditions. He still actively invests in the market as a private individual.
Burry now writes a blog on Substack where he has expressed his thoughts on the AI sector in his articles.