Burry Warns of AI Sector Collapse as Trump Administration Faces Economic Dependency

Investor Michael Burry has warned that the Trump administration must continue to support the growth of the artificial intelligence (AI) sector, as he believes it is now a systemic pillar of American economic stability.

Burry, who was one of the few investors to predict the 2008 subprime mortgage crisis, made this statement through his Substack publication. He claims that AI infrastructure investment currently supports the entire U.S. economic framework and that policymakers face significant constraints in allowing any deceleration in AI-related capital deployment.

Burry has taken a contrarian view on several prominent AI companies, including Nvidia, Oracle, Palantir, Micron, CoreWeave, and Nebius, with short positions accumulated progressively since Q3 2025. He believes that aggressive infrastructure expenditures may fail to generate sustainable profitability over time.

President Trump has publicly committed to maintaining unrestricted AI development trajectories, prioritizing American technological dominance over regulatory caution regarding emerging risks.