Investor Steve Eisman pushed back against Michael Burry's warning about how major technology companies are accounting for their AI infrastructure spending, saying that he does not believe the issue is as consequential as the famed hedge fund manager suggests.
‘His Concerns’ Don’t Matter All That Much
Burry and Eisman, two investors who are renowned for betting against the housing market leading up to the 2008 financial crisis, which was dramatized in the 2015 movie “The Big Short,” now hold differing views on the sustainability of Big Tech's AI-driven rally.
On The Real Eisman Playbook podcast last week, Eisman discussed Burry’s latest bet against leading AI companies such as Palantir Technologies Inc. (NASDAQ:PLTR) and Nvidia Corp. (NASDAQ:NVDA) earlier this month.
See Also: Is Michael Burry Going To Be Wrong Again?
“Burry is arguing that the hyperscalers are artificially inflating their earnings simply by changing their depreciation schedules,” Eisman said, referring to his claims that Meta Platforms Inc. (NASDAQ:META) and Oracle Corp. (NYSE:ORCL) were, as a result, set to overstate their earnings by 26.9% and 20.8% by 2028, respectively.
Despite acknowledging Burry’s math on this matter, Eisman disagreed with his conclusion. Even if Burry’s argument holds up, “I just don’t think his concerns matter that much,” he said.
Eisman downplayed the impact of prolonging depreciation, arguing that it won't meaningfully affect the long-term outcomes of the AI investments.
“The big question as to AI spending is what kind of returns and cost savings these massive investments will or won’t bring,” he said. “That is the key question and we won’t know the answer for a while.”
Burry Teases ‘Much Better Things’ Later This Month
It was reported last week that Burry has called curtains on his famed hedge fund, Scion Asset Management, with a letter to investors expressing his disappointment for not being “in sync with the markets” for some time, amid runaway valuations and irrational exuberance.
In his X account, Burry has since teased a new development starting November 25. 2025, saying, “on to much better things.”
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