Michael Burry bets against Oracle and Nebius as AI bubble fears mount

Burry detailed his latest positions on his Substack, Cassandra Unchained, describing the companies as "fish in a barrel" that have gorged themselves on off-balance sheet liabilities and purchase commitments. He specifically targeted Oracle, noting he shorted the stock at roughly $145 per share, and Nebius, where he initiated a position at approximately $212. Burry argues these firms are growing so large that they risk keeling over from a lack of oxygen as the costs of maintaining their massive data-center footprints climb.

While Oracle shares surged to nearly $350 last year on the back of massive cloud demand, they have since tumbled nearly 60% amid concerns over debt. Nebius has seen a more volatile path, with its stock leaping roughly ninefold over the past two years despite recent price fluctuations. Burry contends that both companies face significant execution risks, particularly regarding the difficulty of securing long-term customer commitments to offset the high costs of their AI-heavy business models. While market bulls point to triple-digit growth in remaining performance obligations and revenue as evidence of a sustainable boom, Burry remains unconvinced, characterizing the current AI investment cycle as a potential "Homeresque own goal."