Burry Bets $1.1 Billion on AI Bubble Bursting by Next September

Michael Burry has shifted his short bets on Nvidia and other AI-related stocks to put options, signaling he's more confident than ever that the AI bubble will burst by next year. The investor, known for his successful shorting of subprime mortgages before the 2008 crash, made this change after re-reading a report from Ares Management.

The report raised concerns about whether AI capital spending can sustain its current level, citing a 'season' in which AI revenue disappoints and causes companies to redirect their investments. Burry also pointed to rising interest rates as a pressure point, arguing that private equity and insurance money funding AI infrastructure becomes more expensive.

Burry's most bold move is his Nvidia position, where he bought put options expiring in September 2027 with strikes in the mid-$100s. This means Nvidia would need to roughly halve its price within a year for Burry to profit meaningfully.