Michael Burry Shorts Oracle Amid AI Infrastructure Spending Concerns
Michael Burry's Scion Asset Management has taken a bearish stance against Oracle Corporation, revealing put options and direct short positions against the tech giant. The MOVE aligns with Burry's skepticism toward companies aggressively pursuing AI-related infrastructure investments.
Oracle's $95 billion debt load—the largest non-financial corporate borrowing in Bloomberg's high-grade index—reflects its costly push into cloud data centers equipped with Nvidia chips. While investors initially cheered the strategy with a 36% single-day stock surge last September, Burry contends the spending spree is reckless and poorly justified.
The position extends Burry's November bets against AI darlings Nvidia and Palantir. His Substack critique suggests Oracle's cloud ambitions stem more from executive ego than sound business strategy, marking another high-profile short in the overheated AI sector.
