["Big short" Michael Burry accelerates his bet on AI collapse: foam may burst earlier than expected] BlockBeats news, on September 29th, according to CNBC, Michael Burry, the prototype of "Big Short", is predicting the direction of the AI market and converting some of his direct short positions in Micron Technology, Nebius, Palantir, and iShares Semiconductor ETF (SOXX) into put options to gain higher leverage at a lower cost. Bury stated in his latest investment communication: 'From a fundamental perspective, I am moving ahead with my schedule, so I hope to increase the leverage of my short positions. When the timing is clearer, using leverage is also easier to accept. There is nothing that better reflects leverage than options, and in the current situation where volatility indicators such as VIX are extremely low, put options are relatively cheaper.'. He said that part of the adjustment was due to the consideration of reducing tax burden, but the main reason was that "the AI foam may burst sooner or later". Its current major position adjustments include: replacing Micron Technology's short position with a put option that expires in June next year and has an exercise price in the $500 range; ·Replace Nebius' short position with a put option that expires in June next year and has an exercise price in the double-digit range; ·Replace the SOXX short position with a put option that expires in September 2027 and has an exercise price of just over $400; ·Extend and expand Palantir's existing short and put option positions, with the core being put options expiring in September 2027 with an exercise price of just over $100. According to Ares Management's research, the current AI investment boom relies on companies continuing to expand capital expenditures and AI revenue that has not been fully validated. If only one quarter's AI revenue falls below expectations to support related capital expenditures, some company boards may reallocate funds to other high certainty projects, and existing legal agreements provide space for such adjustments. In addition to AI commercial returns, Bury continues to be bearish on the storage chip cycle. He quoted Acer CEO Chen Junsheng's viewpoint that as China's storage chip production capacity continues to increase, the industry cannot sustain a long-term supply shortage, and the storage market will eventually return to cyclical fluctuations. Bury has been bearish on technology stocks this year. In May, he said that the current market was similar to the last months before the Internet foam burst from 1999 to 2000. However, the US stock market continued to hit new highs, with the Nasdaq Composite Index breaking historical records last week; Micron and Palantir are currently about 16% and 10% lower than their historical highs, respectively. [Original link]