Michael Burry Launches Paid Newsletter to Warn of AI Bubble After Hedge Fund Closure
Michael Burry, the investor famous for predicting the 2008 housing market crash as depicted in The Big Short, has officially closed his hedge fund and launched a paid Substack newsletter to share his views on market trends, with a particular focus on what he calls an emerging artificial intelligence (AI) bubble.
After shuttering Scion Asset Management, Burry is dedicating himself full-time to his newsletter, Cassandra Unchained, which launched on November 23, 2025. The subscription service charges $39 per month or $379 annually and has quickly attracted over 35,000 subscribers eager to access Burry’s detailed market analyses and contrarian views.
Through his newsletter, Burry delivers in-depth commentary on stocks, economic trends, and various investment manias, drawing on 25 years of professional portfolio management experience. Unlike his previous approach of limited and cryptic social media posts, the newsletter offers a more expansive and unfiltered platform for his investment ideas and warnings.
Warning of an AI Market Bubble
Burry has been increasingly vocal about what he regards as an unsustainable AI boom. In his initial newsletter posts, including one titled “The Cardinal Sign of a Bubble: Supply-Side Gluttony,” he compared the current AI technology frenzy to the dot-com bubble of the late 1990s and early 2000s. Despite some arguing today’s AI companies differ due to strong profitability, Burry points to massive overspending and excessive supply capacity in AI infrastructure as signs of a speculative bubble.
He specifically calls out key AI players such as Microsoft, Google, Meta, Amazon, Oracle, and startups like OpenAI for their enormous investments—totaling over $1 trillion in microchips, data centers, and AI development. Burry warns these investments have created an interconnected network of companies recycling capital, much like the situation before past market crashes.
Nvidia, the dominant chipmaker for AI applications, has been singled out by Burry as analogous to Cisco during the late-1990s internet infrastructure boom. While Nvidia’s CEO Jensen Huang dismisses the bubble concerns, asserting the AI-driven computing revolution is just beginning and will sustain demand for years, Burry remains skeptical about the long-term sustainability of such valuations.
Departure from Traditional Investment Management
Closing his hedge fund was partly motivated by regulatory and compliance requirements that Burry felt “effectively muzzled” his ability to communicate freely with the public. Now unbound by those constraints, he offers subscribers a direct, no-holds-barred view into his investment thesis and detailed market deconstructions.
Despite ending active fund management, Burry stresses he is not retiring. Rather, he expresses renewed enthusiasm for analyzing markets and companies daily. His newsletter promises one to two posts weekly, along with Q&As, videos, and guest contributions to enrich his subscribers’ understanding.
Public and Market Reaction
Burry’s warnings have already sparked significant online discussions and a resurgence of interest in his market perspectives. Though some of his recent market calls have not materialized, his skepticism of the overheated AI sector resonates amid growing concerns about tech valuations and speculative capital flows.
As AI technology continues to reshape industries, investors watch closely whether Burry’s call on an AI bubble will presage a wave of market corrections similar to those in 2000 and 2008. His newsletter offers a rare, candid, and expert-driven viewpoint for those seeking to navigate current market risks.