Michael Burry Warns US Economy Depends on AI Boom

Investor Michael Burry warned that the United States economy has become critically dependent on the artificial intelligence infrastructure buildout. Burry, who has been shorting AI-linked stocks, compared current market conditions to the 1987 market plunge and the 1999 Dotcom crash, citing rising AI debt and excessive optimism.

Simultaneously, leaders from major AI firms called for a slower pace of development to prevent power concentration and misuse. This included OpenAI CEO Sam Altman, xAI head Elon Musk, and Anthropic CEO Dario Amodei. These warnings from industry insiders contributed to a sharp selloff in global AI stocks.

In response to these market pressures and competitive threats, Donald Trump has prioritized US leadership in AI as a national and economic priority. The administration is pushing for expanded domestic computing infrastructure and faster adoption of AI in national security to maintain a strategic advantage over China.