Michael Burry shorts Oracle and Nebius amid AI sector concerns

Investor Michael Burry has initiated new short positions in Oracle Corp. and Nebius Group, signaling skepticism regarding the current artificial intelligence investment rally. Burry opened his Oracle short at approximately $144.63 per share and a direct equity short in Nebius at $211.77, opting against options due to high implied volatility.

Burry expressed concerns that many companies in the tech and cloud sectors are overextended, citing significant leverage risks tied to off-balance-sheet commitments and long-term lease obligations that may outweigh current sales. Regarding Oracle, the move follows a period of heavy investment in AI infrastructure and data centers. Burry noted the risks associated with high capital expenditures and the dependency on major clients like OpenAI to meet financial obligations.

While bearish on these cloud-related entities, Burry maintained or increased long positions in several other companies, including Flutter Entertainment, Fiserv, Zoetis, and Mercado Libre, following their recent earnings reports.