Michael Burry warns $573B of AI financing loops through just 8 companies in circular deals
2C_ornot2C · x · 2026-10-07
Michael Burry cites a Wall Street lender Ares report tracking $573B of AI financing over the past 12 months, all flowing through just 8 companies: Meta, Oracle, Microsoft, Amazon, OpenAI, Anthropic, Broadcom and Nvidia.
- They lend to each other, guarantee each other's debt, and buy from each other, so each loan is backed by another company's promise to keep spending
- Every deal depends on AI spending never slowing down
- If AI revenue disappoints for even one season, guarantees could all be called at once, when the backers are weakest
- Burry likens it to the circular financing that turned the 2000 telecom fiber boom into a bust
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