Michael Burry, the real - life figure who inspired the character in the movie The Big Short, took to the social platform X to sound the alarm. He cautioned that the present surge in AI investment is nothing but a doomed “mania,” and not even intervention from the U.S. government can stop a systemic meltdown.

Burry highlighted that the enormous investments made by tech behemoths like Microsoft and Google in microchips and data centers are destined to become outdated. This is due to the swift pace of technological standardization, which will result in unproductive competition, extensive asset write - offs, and a sharp decline in stock prices.

Taking Nvidia as a case in point, Burry pointed out that its products are not only energy - guzzling but also technologically behind the times. Although Nvidia currently holds a dominant position in the market, it will eventually be supplanted by its rivals.

Moreover, Burry made a grim prediction about the AI industry, foreseeing a prolonged downturn. He anticipated that job growth in the tech sector would either come to a standstill or start to decline.