Michael Burry has shifted bearish positions in major AI-linked companies from stock shorts into put options, saying weekend research led him to move up his timeline for a potential downturn. He covered shorts in Nvidia, Oracle, Micron, Palantir, Nebius and CoreWeave, moving all but CoreWeave into puts; several options run through late 2027. Burry argues President Donald Trump's team views AI investment as the economy's main growth engine and cannot easily allow the boom to fail, while the government has fewer tools to contain a financial or debt crisis. AI exposure is widespread among S&P 500 index-fund investors because market-cap weighting gives significant weight to companies such as Nvidia, Oracle, Micron and Palantir. Goldman Sachs Research estimates AI investment will equal about 1.8% of U.S. GDP this year, within the historical range of earlier technology booms. Higher Treasury yields, including a 10-year rate near 5.17% last week, are increasing borrowing costs for data-center developers and the government. Oracle's force majeure notice involving a New Mexico data center tied to OpenAI has also unsettled lenders in the AI infrastructure market, although Blue Owl said financial commitments were unchanged. Analysts remain bullish on the five companies Burry continues to target, despite valuation and financing concerns. Micron's Sept. 30 earnings are set to provide an early indication of AI demand as borrowing costs rise.