Michael Burry Just Said 7 Words Dismissing AI After Slowdown Fears: "There Is Nothing AI to Slow Down." Should Investors Trust His Nvidia and Palantir Shorts?

Famed investor Michael Burry has issued sharp criticism of the artificial intelligence industry, calling recent calls by tech executives for a development slowdown "self-serving." Burry stated on social media that large language models are not true artificial intelligence and will not achieve artificial general intelligence, asserting that there is "nothing AI to slow down" as increasing competition reduces industry benefits. Burry, known for his subprime mortgage short during the 2008 financial crisis, previously held put options on key AI beneficiaries including Nvidia and Palantir Technologies. He recently closed his Nvidia put position and trimmed Palantir puts to free up cash, though he still maintains several short positions in the broader technology sector. In contrast, Wall Street remains largely optimistic about generative AI infrastructure demand. Nvidia expects global AI capital expenditures to reach between $3 trillion and $4 trillion by 2030. Nvidia shares are up roughly 13% year-to-date at a valuation of 27 times earnings, while Palantir trades at a price-to-earnings ratio of 148.