Burry Warns AI Buildout Could Put $3 Trillion in Hidden Liabilities on Hyperscalers
Michael Burry contends Amazon, Meta, Alphabet, Microsoft and Oracle have over $3 trillion in off-balance-sheet AI commitments, including about $1.2 trillion in uncommenced leases and $1.5 trillion in purchase commitments. He warns that rapid AI hardware cycles outpace long data-center buildouts, with hundreds of billions in construction-in-progress not yet depreciated under GAAP, which could force impairments if demand slows. He also argues Wall Street under-models maintenance capex and the economic depreciation of AI infrastructure, leaving current bullish projections vulnerable when the AI spending cycle cools.