The Big Short's Michael Burry Reveals the Only Way the US Can Keep Up with China in the AI Race

Michael Burry, the investor best known for his role in predicting the 2008 financial crisis and featured in The Big Short, has recently shared his views on how the United States can stay competitive in the rapidly evolving AI race. In a post on X, Burry argued that the US's best strategy is to facilitate a federal investment of around $1 trillion (£744.8 billion) towards the development and deployment of small nuclear reactors. This, he claims, would be essential to support the surging electricity demand driven by AI data centres and emerging high-tech manufacturing.

Burry emphasised that quick, widespread deployment of small nuclear reactors across the US could be a game-changer for maintaining long-term economic and technological growth. However, he warned that bureaucratic delays and regulatory hurdles could hinder progress. He called on President Donald Trump, Vice President JD Vance, and other key policymakers to prioritise this initiative and to expedite the necessary approvals, warning that an energy shortfall could soon become a significant obstacle to American innovation and economic expansion.

'If I had the ear of @JDVance @realDonaldTrump @DonaldJTrumpJr @GovRonDeSantis @LeaderJohnThune, I would ask them to take a trillion dollars (since trillions just get thrown around like millions now) and bypass all the protests and regulations,' Burry wrote. 'Dot the whole country with small nuclear reactors, while also building a brand-new, state-of-the-art grid for everyone.'

Burry further stressed that securing the power infrastructure should include the latest physical and cybersecurity measures. He even suggested the formation of a new, specialised Nuclear Defence Force tasked with safeguarding each facility against potential threats. His comments come at a time when energy demands are skyrocketing due to AI data centres, advanced manufacturing plants, and other high-energy industries.

Tech Leaders Concur with Burry

Futurum Group CEO Daniel Newman echoed Burry's concerns about regulatory challenges, highlighting how these hurdles are among the greatest impediments to the AI revolution. Sharing Burry's post on X, Newman stated, 'Four words about AI that I never planned to say: Michael Burry is right. Regulation is our single biggest bottleneck to achieving our lofty AI ambitions.'

He dismissed concerns about an AI bubble, asserting that the demand for AI and related technologies remains strong. However, Newman warned that without boosting energy capacity and removing regulatory barriers, progress could be severely hampered.

'We cannot energise the data centres we will need ... if we don't speed up the buildout of energy infrastructure and reduce the regulatory red tape that slows "breaking ground",' he added.

Burry's Recent Investment Moves

Burry, who closed his hedge fund a few months ago citing misalignment with market trends and his value-based investment philosophy, has also made notable bets against major tech companies. He revealed substantial short positions against Nvidia (Nasdaq: NVDA) and Palantir Technologies (Nasdaq: PLTR).

More recently, Burry disclosed in a Substack post that he has also taken a short position against Oracle (NYSE: ORCL), revealing put options on the company's shares. He explained that he has been directly shorting Oracle over the past six months. Burry criticised Oracle's recent strategic moves, particularly its expansion into cloud computing, which has involved significant debt to expand data centre capacity.

Oracle's shares have declined approximately 12.2% over the past six months, and the company currently carries nearly $95 billion (£70.7 billion) in outstanding debt. Burry expressed dissatisfaction with Oracle's strategic direction and the company's investment priorities, suggesting that he believes the company's current trajectory is misaligned with long-term value.

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