Bearish view on AI capex sustainability

Breaking: Michael Burry warns Big Tech's AI spending could trigger massive write-offs by 2028-2029 Here's his reasoning and what it means for the future: 1. Microsoft, Amazon, Alphabet, Meta, and Oracle have racked up ~$3 trillion combined in purchase commitments, leases, and guarantees tied to AI infrastructure 2. Net capital investment by S&P 500 companies hit 2.07% of GDP as of June 30, the highest level in nearly 40 years outside the 2000 Nasdaq peak 3. Alphabet alone carries nearly $900 billion in off-balance-sheet exposure 4. Burry states "Capital alone is no lasting competitive advantage,". The same capital-cycle pattern that sank previous booms in the markets If Big Tech wipes out these massive investments by 2028, it means tech companies will lose billions in paper profits, stock prices will crash, and chip companies feeding the AI bubble will run out of customers