Burry Bets Against Nvidia-Backed Nebius, Citing AI Infrastructure Concerns

Michael Burry, known for calling the 2008 housing crash, has shorted Nebius Group (NBIS), a company backed by Nvidia (NVDA). The move comes after Nvidia disclosed a 9.3% stake in Nebius, sending the stock up 16%. Burry's bet against NBIS is not just about the company itself but also reflects his concerns about AI infrastructure as a whole.

Burry believes that if demand for AI slows down, companies taking on heavy debt and long-term commitments could be in serious trouble. Nebius, which has raised its 2026 capital spending guidance to $20-$25 billion, fits this profile. The company's long-term debt more than doubled to $8.4 billion.

However, analysts argue that Nebius already has answers to these concerns. The company's first-quarter revenue skyrocketed 684% from a year earlier, and its margins improved. Management also pointed out that the spending is tied to demand that is already committed, giving it visibility into revenue those investments will produce.