“The Big Short” investor Michael Burry took another swipe at the AI bubble late Wednesday, while U.S. President Donald Trump doubled down on data centers as “money machines” capable of delivering jobs and tax windfalls.

Burry Targets AI Data Center Boom 

Late Wednesday, Burry posted an AI-generated image on X titled “Heptalogy of Data Center Fantasy,” depicting Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), Oracle (ORCL), Microsoft (MSFT), Caterpillar (CAT) and Nvidia (NVDA) as magical books in a fantasy series. His caption was: “Love Fantasy!”

The post offered no detailed explanation, but appeared to be an extension of a bearish thesis Burry has been developing since at least late 2025: that the AI boom increasingly resembles the dot-com and telecom infrastructure bubbles, with spending on chips, power and data centers racing ahead of sustainable demand.

The post came the same day Trump praised data centers as one of the biggest future drivers of jobs and state revenue. “They are big, strong, bold, and Money Machines for the State in which they are built,” Trump said on Truth Social.

Trump: Data Centers Are ‘Liquid Gold’

Trump’s comments came after New York Gov. Kathy Hochul signed an executive order on Tuesday to pause large data center projects that consume 50 megawatts or more of power. The moratorium can last up to one year while the state evaluates the impact of new facilities on electricity prices, water use and local resources.

Trump said New York was driving projects toward Alabama, Florida, Texas, Arizona and other states. “Both the Taxes and the Jobs amount to LIQUID GOLD!” he said. He also called data centers “Cash Cows” capable of generating lower taxes and “record setting jobs.” Additionally, Trump said developers should pay for their own water and power, with any excess benefits flowing back to state and local communities. “Data Centers are tremendous WINS for the States and Communities that are lucky enough to get them,” he said.

Burry Warns Of Temporary AI Demand

While Burry is not arguing that AI lacks value, he is concerned that markets are treating today’s costly experimentation phase as permanent demand. In May, he called the surge in training, benchmarking and internal AI use “tokenmaxxing.” “The bezzle is not that AI is fake,” Burry said. “The bezzle is the temporary demand—benchmarking, trace-harvesting, leaderboard hopping—that is being financed and tallied as if it were permanent demand.”

The demand is rippling through the ecosystem: hyperscalers buy more chips, Nvidia locks in supply, developers build data centers and lenders finance long-lived infrastructure. If major buyers slow spending, Burry warns that the reversal could trigger a “wicked bullwhip.”

NVDA Sits At Center Of Burry’s Bear Case

Nvidia sits at the heart of Burry’s bear case as its growth depends heavily on a small group of hyperscale customers. In February, he said that the company’s purchase obligations had surged to $95.2 billion from $16.1 billion a year earlier, with combined inventory and supply obligations reaching about $117 billion. “This is not business as usual. This is risk,” he said.

Burry compared the setup with Cisco during the 2000-2001 downturn, when collapsing enterprise demand forced large inventory and commitment write-downs. He said that Nvidia may be even more exposed because much of its supply chain is highly specialized and difficult to repurpose. “That is a custom non-fungible supply chain,” he said.

Burry Flags AI’s Financing Risk

Burry has now shifted his focus from demand to the financing behind the boom. In May, he noted that AI accounted for 87% of venture-capital funding, 49% of investment-grade bond issuance and 38% of high-yield issuance. He compared the concentration with the late-1990s tech bubble, when more than $100 billion of investment-grade debt issued in 1999 and 2000 had fallen to junk by 2002. Last week, he clarified his position: “I don’t think the problem is at the demand layer. What’s happening at the finance layer is interesting and could be problematic. But time will tell.”