Burry Urges Market Crash to Block OpenAI and Anthropic IPOs

Key points

• Burry stated on X that markets should 'tank hard' to stop OpenAI and Anthropic IPOs, claiming they would destroy trillions in capital.
• The investor moved his bearish thesis timeline forward, expecting the AI bubble to burst by next summer rather than 2028.
• Burry swapped short positions for put options in Micron, Nebius, Palantir, and the SOXX semiconductor ETF to gain leverage.
• He cited Ares Management research suggesting AI capital spending is unsustainable if revenue disappoints, allowing boards to redirect funds.
• OpenAI CEO Sam Altman called a 2026 IPO 'ill-advised,' while Anthropic is expected to list after November’s midterm elections.
• Burry argues that debt-fueled spending on chips and data centers is vulnerable to higher interest rates and slowing demand.

Background

Burry has previously criticized OpenAI and Anthropic for advocating AI slowdowns, labeling such rhetoric as a self-serving marketing ploy to delay competition and IPOs. In late September 2026, he argued that current language models do not constitute true artificial general intelligence, suggesting that calls for caution primarily benefit incumbents. Additionally, other market observers like Washington University CIO Scott Wilson have warned that OpenAI and Anthropic face existential threats from cheaper Chinese AI models, challenging the economic viability of their massive spending commitments. These earlier critiques align with Burry’s current focus on the unsustainability of capital expenditure in the AI sector.

How outlets are covering it

Business Insider highlights Burry’s explicit call for a market crash to block IPOs, emphasizing his view that public listings would destroy investor capital. CNBC focuses on the technical shift in Burry’s trading strategy, noting his move from short positions to put options to increase leverage as he accelerates his timeline for a bubble burst. Yahoo Finance mirrors the CNBC report, detailing specific swaps in Micron, Nebius, and Palantir positions, while noting that some AI stocks remain below their all-time highs despite the broader market rally. All three sources agree on Burry’s growing conviction that the AI boom is fragile, but they differ in emphasis: Business Insider frames it as a moral and financial warning against specific companies, while CNBC and Yahoo Finance focus on the mechanical aspects of his hedging strategy and the underlying research from Ares Management.

Why it matters

Burry’s warnings signal a potential shift in market sentiment regarding AI valuations. If his thesis on unsustainable capital spending proves correct, it could trigger a significant correction in tech stocks, particularly those heavily invested in AI infrastructure. The timing of OpenAI and Anthropic IPOs is critical; a market crash could delay these listings, affecting capital availability for AI development. Conversely, if the market continues to rise, it may validate the bullish stance that AI revenues will eventually justify current expenditures. Investors are watching for signs of a revenue disappointment or a shift in capital allocation that could trigger the bubble burst Burry predicts.

What to watch

Investors should monitor the performance of AI-related stocks, particularly Nvidia, Palantir, and Micron, for signs of a downturn. The timing of Anthropic’s IPO after the November midterm elections will be a key indicator of market confidence. Burry’s put options, expiring in June and September 2027, will provide a clear signal of his conviction. Additionally, any signs of slowing AI revenue growth or a shift in capital allocation by major tech companies could validate Burry’s thesis and trigger a broader market correction.