Michael Burry Shorts Oracle and Nebius Group AI Stocks

Investor Michael Burry has shorted shares of AI infrastructure providers Oracle and Nebius Group, citing unsustainable growth and concerns over off-balance sheet liabilities. In a Substack post, Burry revealed he entered short positions on Oracle at approximately $145 per share and Nebius at approximately $212 per share.

Burry argues that AI companies are overextended by long-term lease obligations and are artificially boosting earnings by understating GPU depreciation. He characterized this practice as "one of the more common frauds of the modern era." Regarding Nebius specifically, Burry noted high execution risk stemming from the capital intensity required for the data center business.

While Oracle shares have dropped nearly 60% from their peak amid debt concerns, Nebius has experienced significant growth this year through contracts with Microsoft and Meta Platforms. Despite his bearish stance on AI infrastructure, Burry maintains positive positions in other holdings, including Mercado Libre, Zoetis, Fiserv, and Flutter Entertainment.