Michael Burry Warns of Massive Write-Downs at Big Tech Stocks

Star investor Michael Burry warned on September 24, 2026 of massive write-downs at Big Tech firms due to excessive AI infrastructure investments. The investor, known for his successful bet against the US real estate market before the 2008 financial crisis, identified approximately $3 trillion in AI-related commitments that do not appear on the balance sheets of major technology companies.

$3 Trillion Off Balance Sheets

Burry drew attention in a public statement to the fact that so-called hyperscalers—large cloud and technology companies—have entered into enormous financial commitments for AI infrastructure that are carried off balance sheets. According to Burry, these off-balance-sheet commitments could "blow a hole in Big Tech revenues."

Specifically, the investor named five companies that are likely to be affected by this development:

• Amazon (AMZN)
• Meta (META)
• Alphabet/Google (GOOGL)
• Microsoft (MSFT)
• Oracle (ORCL)

Write-Downs Forecast for 2028 to 2029

According to Burry's assessment, expected write-downs should materialize within a period of two to three years—specifically in 2028 to 2029. The investor draws parallels to the telecommunications bubble of the Dotcom era, when companies invested massively in infrastructure that later proved to be oversized.

Burry argues that the unprecedented AI infrastructure spending by major technology firms represents an unsustainable accumulation of financial risks. If returns from these massive investments fall short of expectations, significant impairments would be inevitable.

Oracle in Particular Focus

Burry expressed particular concerns on September 25, 2026 regarding Oracle. The investor questioned the software company's accounting practices in connection with customer advance payments and revenue recognition. Additionally, he pointed to rising debt levels and cost risks associated with Oracle's Project Jupiter—an initiative to expand data centers.

Repeated Warnings Since January

The current statements represent a reiteration and update of earlier warnings. As early as January 12, 2026, Burry had warned of widespread bankruptcies and write-downs and predicted a possible "panic of 2026 or 2027." The September statements refined this assessment with more specific timing and focused more strongly on the AI infrastructure spending of hyperscalers.

Burry communicated his warnings through blog posts and investor notices. The comparison to the telecommunications bubble of the early 2000s underscores his concern that the current AI euphoria could lead to a similar wave of misallocated investments.