Legendary investor Michael Burry, famous for predicting the 2008 financial crisis as depicted in the film The Big Short, has revealed a new bearish bet against Oracle Corporation. The disclosure came in a Substack post published Friday after markets closed, adding Oracle to his growing list of technology sector short positions.
Burry, who runs hedge fund Scion Asset Management, criticized Oracle's aggressive expansion into cloud computing services. The company, traditionally known for its database software, has taken on approximately 95 billion dollars in debt to finance its data center buildout. In his post, Burry wrote that he does not like how it is positioned or the investments it is making, suggesting the company did not need to pursue this path and questioning whether ego might be driving these decisions.
Oracle shares have declined roughly 40 percent from their September 2025 peaks, despite experiencing a dramatic 36 percent single-day surge earlier in the year following bullish cloud forecasts. Burry has purchased put options on Oracle shares and revealed he has also directly shorted the stock over the past six months.
This Oracle bet follows Burry's November 2025 disclosure of short positions against AI darlings Nvidia and Palantir Technologies. According to Scion's 13F filing, Burry purchased put options betting Palantir would fall to 50 dollars from around 200 dollars, and Nvidia would drop to 110 dollars from approximately 190 dollars by 2027.
Burry explained his rationale for targeting Nvidia specifically, describing it as the most concentrated way to express a bearish view on artificial intelligence. He noted that Nvidia is the most loved and least doubted company, making shorting it cheap with inexpensive put options compared to other more questioned large shorts.
The investor clarified why he avoided shorting larger technology giants like Meta, Alphabet, and Microsoft, noting their businesses extend well beyond AI. He explained that shorting Meta would also short its social media and advertising dominance, while shorting Alphabet would mean betting against Google Search, Android, and Waymo. He added he would short OpenAI at a 500 billion dollar valuation, underscoring his broader skepticism about the pace and economics of the AI buildout.
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