Michael Burry has posted warnings on his Substack, including "The end is nigh" and a quote from Tim Burton's Batman, calling AI enthusiasm "mass addiction" and predicting it "may die a death by a thousand cuts." He shorted Micron at $1,051.87 on July 1 after the stock had climbed nearly 700% over the prior year. On July 10, he published an attack on the technical foundation of the AI industry, arguing AI development went language-first when it should have gone reasoning-first. He wrote, "We have mistaken the output of artificial intelligence (language) for the engine of it (reason)." Burry describes a "parameter trap" where scaling language does not solve the underlying reasoning problem. He notes that hyperscaler AI spending could hit $725 billion in 2026, the Philadelphia Semiconductor Index is up 88% this year, and Nvidia's market cap is roughly $5.45 trillion with a trailing P/E of 43. Burry has disclosed short positions on Nvidia, Tesla, Micron, Applied Materials, Caterpillar, and the iShares.