Burry’s NVIDIA Bets Signal Skepticism as AI Spending Soars

Michael Burry is betting that NVIDIA’s rally has gone too far. The investor made famous by “The Big Short” increased his put options on NVIDIA with a strike price of $115 expiring in January 2027 — a clear signal of skepticism toward the stock’s current valuation. This move comes as capital floods into artificial intelligence startups, with AI drawing the highest disclosed financing amount of any sector this week at approximately RMB 4.708 billion. Shengshu Technology, an AI video app maker, closed a nearly RMB 2 billion Series B round — the largest disclosed deal domestically — backed by Alibaba, TAL Education, and Baidu in a $293 million round. Alibaba itself climbed 2.1% in Hong Kong trading after its new AI video-generation model topped a global ranking. Yet Burry’s positioning suggests he sees a disconnect: while investors pour money into AI applications and infrastructure, the hardware enabler at the center of the boom may be overpriced. His simultaneous purchase of Alibaba and JD.com shares — citing JD.com’s recent weakness as an ideal entry point — underscores a selective approach, favoring exposed but discounted assets over the dominant player in AI chips. The consequence is not a prediction of collapse, but a warning that the market’s faith in perpetual AI-driven growth may not be priced for risk. Burry isn’t shorting the idea of AI. He’s shorting the assumption that NVIDIA must win no matter what.