Michael Burry is betting against Oracle. The investor, who is also known from the movie “The Big Short,” has revealed bearish positions against the company founded by Larry Ellison after its recent expansion into artificial intelligence (AI) infrastructure. In a latest Substack post, Burry revealed that he holds put options on Oracle shares and has directly shorted the stock over the last six months. This comes after he previously disclosed bearish bets against AI chipmaker Nvidia and Palantir Technologies in November. “I do not like how it is positioned or the investments it is making. It did not need to do what it is doing, and I do not know why it is doing this. Maybe ego,” Burry wrote when asked why he bet against Nvidia and not Oracle.Oracle has been aggressively expanding into cloud computing services, requiring a costly buildout of data centre capacity funded by debt. The company has about $95 billion of debt outstanding, making it the largest corporate issuer outside the financial sector in the Bloomberg high-grade index. In September 2025, Oracle signed a $300 billion, five-year cloud computing deal with the Sam Altman-led OpenAI, under which the ChatGPT maker will purchase computing power from Oracle starting in 2027. While the agreement represents a win for Oracle in the cloud market, it brings execution risks and capital demands.Oracle shares have since been volatile. The stock jumped 36% in a single session in September after an optimistic forecast for its cloud business. Still, those gains faded as investors focused on rising capital expenditures and debt linked to data centre expansion. Oracle finished 2025 about 40% below its September peak.Michael Burry on why he avoids betting against Google, Microsoft and MetaBurry became famous for betting against the US housing market during the 2008 financial crisis. He said he has avoided betting against larger technology companies whose businesses go beyond just AI, such as Meta Platforms, Alphabet, and Microsoft.“If I short Meta, I’m also shorting its social media and advertising dominance. If I short Alphabet, I’m shorting Google Search in all its forms, Android, Waymo, etc. If I short Microsoft, I’m shorting a global office productivity SaaS goliath. The big ones are not pure shorts on AI,” Burry wrote.He said those companies will likely reduce their spending over time, take losses from building too much capacity, and lower the value of some assets on their books. However, they will remain dominant in their main businesses. “These three will not go away,” he added.However, he said that he would bet against OpenAI if it were valued at $500 billion. This shows his doubt about how quickly AI is being developed and whether its economics make sense. Apart from this, Burry also described Nvidia as the best way to bet against the AI boom.“Nvidia also is the most loved, and least doubted. So shorting it is cheap, and its puts are cheaper than some of the other big shorts out there that are more doubted,” he added.
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