Michael Burry Ditches AI Stock Shorts for Put Options Amidst Record Loss

Noted investor Michael Burry has altered his bearish stance on AI by shifting several stock shorts into long-dated put options. This move comes as Anthropic, an AI company preparing for a potentially record-breaking IPO, disclosed a multibillion-dollar loss in its confidential prospectus. The document revealed a net loss of approximately $42B and an operating loss exceeding $8B.

Anthropic's revenue jumped to nearly $4.6B in 2025, a twelve-fold increase from the previous year. This surge was largely driven by two major customers, with many others lacking long-term contracts. The company spent $7.33B on compute and infrastructure in 2025, accounting for more than half of its operating expenses.

Burry has covered common-stock shorts in Micron Technology, Nebius Group, Caterpillar, the iShares Semiconductor ETF, CoreWeave, Nvidia, and Palantir Technologies, replacing most with puts extending into 2027. He also initiated a new short position in MetLife using longer-dated puts.

Burry attributed his repositioning to research conducted over the weekend, which led him to believe the AI bubble could burst 'sooner than later.' Fundamentally, he is moving timelines up and seeking more leverage in his short positions. He views put options as a means to achieve this leverage.