Michael Burry urges Wall Street to block OpenAI, Anthropic IPOs, warns of ‘trillions’
Famed investor Michael Burry, known for predicting the 2008 housing crash, is warning against the planned IPOs of AI giants OpenAI and Anthropic, arguing they could lead to "trillions of dollars of capital destruction" and other damages. He believes the massive capital requirements of these companies are mismatched with their unproven underlying economics.
Why it matters
Burry's bearish stance from a respected investor could influence market sentiment towards the highly anticipated AI sector IPOs, potentially impacting investment decisions and raising critical questions about the sustainability and valuation of AI companies.
Michael Burry, America’s biggest investor, who is best known for predicting and profiting from the 2008 housing market collapse, has now warned that public listings by AI giants Sam Altman-led OpenAI and Anthropic could lead to massive capital destruction, arguing that the companies should be prevented from going public. In a post shared by on social media platform X (formerly known as Twitter) Burry said that markets should ‘tank hard’ in order to stop the planned initial pubic offerings (IPOs) of OpenAI and Anthropic, describing such an outcome as being ‘for the benefit of humanity’. He later expanded on his criticism, claiming the two companies would ‘suck up’ and then destroy ‘TRILLIONS of dollars of capital’.
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