The Big AI Short

The man who made nearly $1 billion betting the entire U.S. housing market was a fraud is doubling down on his $1 billion bet against AI.

He believes it’s destined for collapse. Should we listen to him?

In 2005, Wall Street banks were making a killing by packaging risky subprime loans into supposedly safe mortgage-backed securities and selling them around the world.

At the time, the subprime market totaled $1.3 trillion. That’s bigger than the entire economy of Switzerland.

That same year, across the country in Cupertino, California, a physician-turned-hedge fund manager was reading mortgage prospectuses that no one on Wall Street ever bothered to look at. What he discovered shocked him.

He realized the banks had gotten too greedy… There was too much leverage in the system… And much of it was built on top of risky subprime loans.

He made a bet the entire U.S. housing market was about to collapse.

His colleagues thought he’d lost his mind. The banks laughed at him. He was even forced to “gate” his fund just to keep the trade alive long enough to be proven right.

Two years after he made the call, the subprime loans unraveled and the housing market collapsed. His fund made nearly $800 million profit.

The Academy Award-winning film, The Big Short, immortalized the trade.

You probably know this famous investor: Michael Burry.

But there’s a part of Burry’s trade Hollywood left on the cutting-room floor. It’s the part that should give you pause before you follow his Big AI Short.

What The Big Short Didn't Show You