Michael Burry, the investor known for predicting the 2008 housing crisis, has taken short positions targeting Oracle and Nebius Group, signaling skepticism about the AI infrastructure boom. His thesis is that these companies are not depreciating their GPUs fast enough, making their earnings appear better than they actually are. Burry estimates that Oracle’s earnings could be overstated by approximately 26-27% by 2028 due to undervalued GPU depreciation. He has taken put options on Oracle shares after shorting the stock in recent months. Burry has pointed to the broader industry’s projection of $176 billion in AI-related capital expenditures across hyperscalers as context for the scale of the problem. Nebius Group has secured AI compute contracts totaling up to $27 billion with Meta over five years and also works with Microsoft. No reliable regulatory filings confirm new short positions against Nebius beyond Burry’s thematic bearishness on AI investments. His hedge fund, Scion Asset Management, was liquidated by late 2025. Burry continues sharing his market analysis through a Substack publication, maintaining a bearish outlook on AI-related investments. The depreciation question he raises is considered important, as technology companies have significant discretion in choosing useful life estimates for their hardware assets.