Michael Burry, the 'Big Short' investor, is placing significant bets against major tech stocks, reportedly holding $1.1 billion in short positions against companies like Alphabet, Meta Platforms, and Amazon. This bearish stance follows Oracle's failure to finalize an AI debt deal with startup Cohere, contributing to a four-session decline in the S&P 500. Burry views the AI market as a potential bubble, a sentiment echoed by concerns over Oracle's high debt for AI projects and Goldman Sachs reporting a doubling of AI-related debt to $200 billion this year. Economist Ed Yardeni suggests the Magnificent Seven tech stocks might be undergoing a correction. Despite these concerns, significant investments continue to pour into AI infrastructure. Global data center capital expenditures surged by 59 percent year-over-year in the third quarter of 2025, marking eight consecutive quarters of double-digit growth. This expansion is driven by increasing demand for advanced computing power, specialized servers, and enhanced storage solutions, with AI spending moving beyond just training to more general uses. Top US cloud providers, including Amazon, Google, Meta, and Microsoft, are boosting their data center budgets. Oracle also plans to double its spending for the Stargate project. Accelerated server spending, featuring NVIDIA Blackwell Ultra, saw a substantial rise, with Dell leading in revenue among server manufacturers. Ares Management Corp. is investing $700 million in Virginia to expand its AI data center presence, acquiring a 314-acre site for $200 million to build two data centers and purchasing two fully-leased data centers in Leesburg for $500 million. In the chip sector, Mythic secured $125 million to develop its energy-efficient analog processing units (APUs), which are 100 times more energy-efficient than standard GPUs. These APUs aim to address AI's substantial power consumption for applications in data centers, robotics, and large language models. An analyst also identifies Advanced Micro Devices (AMD) as a strong AI investment, offering a balanced risk-reward profile. AI's application extends to scientific research, with Edison Scientific raising $70 million for its Kosmos software, designed to accelerate the discovery of new proteins, materials, and drugs. Google Chief Scientist Jeff Dean participated in this funding round. Additionally, Temasek Holdings' venture capital firm, ClavystBio, is investing in biotech startups leveraging AI for medical breakthroughs, particularly in disease treatments like cancer. Recently, US stocks rebounded, with the S&P 500 gaining 0.8% and the Nasdaq Composite advancing 1.5%. This positive shift was fueled by cooler inflation data and strong earnings from Micron, boosting confidence in AI-related spending. Major tech companies such as Nvidia, AMD, Amazon, Meta, Alphabet, and Microsoft all saw gains, indicating renewed interest in AI investments. However, Datavault AI shares dropped 17.7 percent after securing a new $10 million credit facility for working capital and general business needs.
Key Takeaways
- Michael Burry's firm, Scion Asset Management, holds $1.1 billion in short positions against major tech companies like Alphabet, Meta Platforms, and Amazon.
- Oracle failed to close an AI debt deal with startup Cohere, contributing to investor concerns about the AI market.
- Global data center capital expenditures increased by 59 percent year-over-year in Q3 2025, marking eight consecutive quarters of double-digit growth driven by AI investments.
- Top US cloud providers, including Amazon, Google, Meta, and Microsoft, are increasing their data center budgets, and Oracle plans to double spending for its Stargate project.
- Ares Management Corp. is investing $700 million in Virginia for AI data centers, including a $200 million site acquisition and a $500 million purchase of two leased data centers.
- Mythic raised $125 million to develop energy-efficient analog processing units (APUs) that are 100 times more efficient than standard GPUs.
- Edison Scientific secured $70 million in funding for its AI research tool, Kosmos, which accelerates scientific discovery, with Google Chief Scientist Jeff Dean participating.
- ClavystBio, a Temasek Holdings venture capital firm, is investing in biotech startups that use AI for medical breakthroughs.
- An analyst considers Advanced Micro Devices (AMD) a strong AI investment due to its balanced risk and reward profile.
- US stocks rebounded, with Nvidia, AMD, Amazon, Meta, Alphabet, and Microsoft seeing gains, following cooler inflation data and strong Micron earnings, signaling renewed AI investment interest.
Michael Burry bets against tech as Oracle AI deal fails
Michael Burry, the 'Big Short' investor, is adding pressure to tech stocks after Oracle failed to close an AI debt deal. The S&P 500 has seen four straight losing sessions, with tech stocks leading the decline. Burry believes the AI market is a bubble, and Oracle's high debt for AI projects worries investors. Goldman Sachs reports that AI-related debt from tech companies doubled to $200 billion this year. Economist Ed Yardeni suggests the Magnificent Seven tech stocks may be correcting.
Michael Burry bets $1.1 billion against tech stocks
Michael Burry, known for predicting the 2008 housing crash, has placed a large bet against major tech stocks. His firm, Scion Asset Management, reportedly holds $1.1 billion in short positions against companies like Alphabet, Meta Platforms, and Amazon. This move follows Oracle's failure to close a debt deal with AI startup Cohere. Burry has often shown a negative view on the tech sector, especially AI-related companies.
Data center spending jumps 59 percent for AI
Worldwide data center capital expenditures grew by 59 percent year-over-year in the third quarter of 2025. This marks the eighth consecutive quarter of double-digit growth, driven by ongoing investments in Artificial Intelligence. A Dell'Oro Group report highlights that AI spending is now expanding beyond just training to include more general AI uses. This trend shows a strong market demand for advanced computing power, specialized servers, and enhanced storage solutions.
AI drives 59 percent jump in data center spending
Global data center spending increased by 59 percent in the third quarter of 2025, marking eight quarters of strong growth. This surge is due to continued investments in AI infrastructure. Top US cloud providers like Amazon, Google, Meta, and Microsoft are increasing their data center budgets, and Oracle plans to double its spending for the Stargate project. Accelerated server spending, including NVIDIA Blackwell Ultra, saw a big rise. Dell led server manufacturers in revenue, while white-box vendors shipped the most servers.
Ares invests $700 million in Virginia AI data centers
Ares Management Corp. is investing $700 million in Virginia to boost its presence in the AI data center market. The firm will buy a 314-acre site in Spotsylvania County for $200 million to build two data centers with 200 megawatts of power by 2028. Ares is also acquiring two new, fully-leased data centers in Leesburg for $500 million, offering 165 megawatts across 745,000 square feet. Virginia is a key location for data centers, and Ares aims to raise over $8 billion for equity investments in this growing sector.
Analyst sees AMD as top AI investment today
An analyst believes Advanced Micro Devices, Inc. (AMD) is a strong investment in the AI market right now. The company offers a good balance of risk and reward, supported by major tech companies known as the Magnificent Seven. The current market is different from the dot-com bubble, as strong companies are leading the AI transformation. The analyst suggests slowly buying AMD stock to be ready for any market changes.
Mythic raises $125 million for energy efficient AI chips
Mythic has raised $125 million in funding to develop its energy-efficient AI chips, called analog processing units or APUs. These APUs are 100 times more energy-efficient than standard GPUs, aiming to solve AI's huge power use problem. Mythic's technology works for both data centers and smaller devices, supporting AI in robotics, cars, defense, and large language models. The company's unique design combines processor and memory, performing calculations in analog, much like the human brain. This approach offers significant energy savings, lower costs, and faster processing.
Temasek's ClavystBio uses AI for medical breakthroughs
ClavystBio, a venture capital firm from Temasek Holdings, is investing in biotech startups that use artificial intelligence. Based in Singapore, the firm aims to find long-term profits by supporting companies developing new treatments for diseases like cancer. ClavystBio believes AI can help achieve major medical breakthroughs. This initiative pushes for medical advancements through innovative technology.
Edison Scientific raises $70 million for AI research tool
AI startup Edison Scientific has raised $70 million in a new funding round to develop software that speeds up scientific research. The funding was co-led by Spark Capital and Triatomic Capital, with Google Chief Scientist Jeff Dean also participating. Edison's tool, Kosmos, uses AI models to help scientists find new proteins, materials, and drugs. For example, Kosmos can suggest a hypothesis for a complex biological problem in hours, a task that would take humans weeks or months.
US stocks rebound as inflation cools and AI chips shine
US stocks rebounded today, with the S&P 500 gaining 0.8% and the Nasdaq Composite advancing 1.5%. This positive shift followed cooler inflation data and strong earnings from Micron, which boosted confidence in AI-related spending. Micron surged over 11% after reporting better-than-expected revenue forecasts. Major tech companies like Nvidia, AMD, Amazon, Meta, Alphabet, and Microsoft all saw gains, signaling renewed interest in AI investments. Traders will now watch upcoming inflation reports and corporate guidance to see if this rebound continues.
Datavault AI shares drop 17.7 percent after credit deal
Datavault AI shares dropped 17.7 percent during Wednesday's trading. The company announced it secured a new $10 million credit facility from a private investment firm. Datavault AI plans to use these funds for working capital and general business needs. The company, founded in 2015 and based in New York City, offers cloud-native data warehousing solutions for various industries like finance and healthcare.
Sources
- ‘Big Short’ investor Michael Burry piles misery onto tech stocks after Oracle fails to close AI debt deal
- ‘Big Short’ investor Michael Burry piles misery onto tech stocks after Oracle fails to close AI debt deal
- Data Center Capex Up 59 Percent on Continued AI Investment in 3Q 2025, According to Dell'Oro Group
- Data Center Capex Up 59 Percent on Continued AI Investment in 3Q 2025, According to Dell'Oro Group
- Ares Makes $700 Million Bet on AI With Virginia Buying Spree
- Most Attractive AI Bet Today? For Me, It’s AMD (NASDAQ:AMD)
- Mythic to Challenge AI’s GPU Pantheon with 100x Energy Advantage and Oversubscribed $125M Raise
- Temasek's biotech VC arm pushes AI for medical breakthrough
- AI Startup Edison Raises $70 Million to Speed Up Scientific Research
- S&P500 and Nasdaq: Cooler CPI Sparks Rebound in US Stocks; AI Trade Back in Focus Today
- Datavault AI (NASDAQ:DVLT) Trading Down 17.7%
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