Burry Mocks AI Data Center Boom, Trump Sees 'Money Machines'

Michael Burry has once again targeted the AI data center boom as a 'fantasy', warning that it's similar to the dot-com and telecom infrastructure bubbles. In an X post, he shared an image titled 'Heptalogy of Data Center Fantasy' featuring Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), Oracle (ORCL), Microsoft (MSFT), Caterpillar (CAT) and Nvidia (NVDA) as magical books in a fantasy series.

His caption was simply 'Love Fantasy!' but the message is clear: Burry believes that markets are treating today's costly experimentation phase as permanent demand, which he calls 'tokenmaxxing'. He's concerned that if major buyers slow spending, it could trigger a 'wicked bullwhip'.

Nvidia sits at the heart of Burry's bear case due to its heavy reliance on a small group of hyperscale customers. In February, he noted that Nvidia's purchase obligations had surged to $95.2 billion from $16.1 billion a year earlier, with combined inventory and supply commitments reaching about $117 billion.

Meanwhile, U.S. President Donald Trump has praised data centers as 'big, strong, bold' money machines capable of generating jobs and tax windfalls. He believes that states like Texas, Florida, Arizona, and Alabama could capture New York's lost 'liquid gold', calling data centers 'cash cows' that can lower taxes and create record-setting jobs.