“Big Short” Burry Doubles Down on Shorting AI, Calls South Korea's Chip Investment the “Beginning of the End”

Golden Finance reported on July 2 that Michael Burry has recently intensified his bearish strategy surrounding the artificial intelligence sector. According to *The Wall Street Journal*, his latest disclosed short positions span multiple key areas. Among them, Tesla (TSLA), Caterpillar (CAT), Applied Materials (AMAT), and an exchange-traded fund (ETF) tracking chip manufacturers have all been included in his short portfolio. As one of the prototype figures in Michael Lewis's *The Big Short*, Burry has continued his months-long systematic bet against the AI frenzy. His core logic is based on the assumption that asset prices in the sector will undergo significant corrections once the industry hype subsides. These moves come at a sensitive stage for the AI industry. On one hand, the U.S. government has intervened in the release of Anthropic's Mythos-grade model citing national security concerns. On the other hand, the “price shock” brought by AI applications is prompting companies like Microsoft (MSFT) to roll out lower-cost alternatives, forcing a rebalancing of industry business models. South Korean companies' large-scale investment plans have further reinforced Burry's skepticism. Earlier this week, Samsung Electronics and SK Hynix announced plans to invest over $500 billion to build a chip industry cluster. Following the announcement, chip stocks briefly led gains on the Nasdaq index the next day. In response, Burry stated on his Substack: “The immediate rebound was triggered by South Korea's massive spending announcement,” adding, “Well, I think that’s the beginning of the end.” He thus questioned whether the continued capital inflow into the AI sector could translate into corresponding returns.