Michael Burry reveals Oracle and Nebius shorts at $144.63 and $211.77
The investor disclosed new bearish bets against AI infrastructure names while arguing that aggressive spending, leverage and optimistic GPU depreciation assumptions could leave earnings overstated.
Michael Burry has disclosed new short positions in Nebius Group at $211.77 per share and Oracle at $144.63, extending his bearish stance on parts of the AI infrastructure trade rather than on artificial intelligence itself. In an Aug. 6 post on his Substack, Cassandra Unchained, Burry said the trades were "a bit like shooting fish in a barrel," and said he shorted Nebius directly instead of using put options because implied volatility on its puts had risen above 100%. Nebius is due to report second-quarter earnings on Aug. 12, creating a near-term test of his thesis. Burry had closed a previous Oracle put position on Aug. 5 with what he called a "substantial" profit before returning to a bearish stance. His broader argument centers on companies borrowing heavily to build AI infrastructure on demand assumptions he views as unproven. Burry has also disclosed short positions in Nvidia, Micron Technology and Palantir Technologies. He argues that fast hardware obsolescence could make current GPU depreciation schedules too optimistic, potentially forcing accelerated write-downs even if revenue continues to rise. He estimates Oracle's earnings could be overstated by roughly 26% to 27% by 2028 if those assumptions prove wrong, and has also warned about long-term lease commitments that exceed current revenue levels. Nebius has been one of the market's strongest AI performers, posting 684% revenue growth and reaching $1.9 billion in annualized recurring revenue, but its long-term debt doubled to $8.4 billion and capital expenditure guidance rose to $25 billion. The company also disclosed about $27 billion in AI compute contracts with Meta Platforms. Shares were still up 137% year to date and roughly 950% over the past three years, even after easing to around $198.65. Many analysts remain bullish, arguing AI infrastructure demand from hyperscalers such as Microsoft, Meta and OpenAI continues to outstrip available GPU capacity. Consensus ratings cited in the report showed Oracle at Strong Buy with 80% upside potential over 12 months and Nebius at Moderate Buy with nearly 31% upside.
- short positions: Trades that profit if a stock falls, typically by borrowing and selling shares before buying them back later.
- implied volatility: An options-market measure of expected price swings that often raises option premiums when it climbs.
- GPU depreciation: The accounting practice of spreading graphics-processing hardware costs over time, based on assumptions about how long the equipment remains useful.