Famed investor Michael Burry called for a severe market crash on Sept. 29, 2026, arguing on social media platform X that tanking asset prices is necessary to prevent artificial intelligence developers OpenAI and Anthropic from launching initial public offerings (IPOs).
Key Takeaways:
- Michael Burry stated AI labs will absorb and "destroy TRILLIONS of dollars of capital" while agreeing with a joke that a crash would prevent "Skynet" from going public.
- Anthropic is weighing an IPO with a valuation above $2 trillion despite posting a $42 billion net loss in 2025 and incurring $518 billion in cloud infrastructure commitments.
- OpenAI submitted a confidential filing in June but has delayed its listing goal to 2027 following comments from CEO Sam Altman.
- On Monday, Burry converted direct short positions into put options targeting several AI-linked equity stocks.
Burry Escalates Critique of AI Valuations
Writing under his X handle Cassandra Unchained, Burry posted that "for the benefit of humanity, the markets should tank hard and prevent the OpenAI and Anthropic IPOs." In response to a follower arguing that loss-making AI developers can only survive as state-owned assets, Burry replied that capital destruction would be the least of the damage caused by these firms.
Burry also signaled agreement with a comment suggesting a crash is necessary to stop a pop-culture "Skynet" scenario from reaching public markets, responding "Along those lines." Furthermore, Burry endorsed an explanation from xAI's chatbot Grok, which compared current large language model (LLM) exuberance to a dot-com-style speculative bubble where companies fall short of artificial general intelligence (AGI).
Fiscal Deficits and Listing Postponements
The investor's warnings come alongside staggering financial disclosures from major market contenders. Reports surrounding Anthropic's target $2 trillion valuation highlight a $42 billion net loss in 2025, an $8.06 billion operating loss, and $518 billion in long-term cloud commitments. Reuters indicated that Anthropic's public debut is expected to slip beyond the upcoming November U.S. midterm elections.
Meanwhile, OpenAI filed confidentially for an IPO in June, but CEO Sam Altman subsequently labeled the current year a poor window for going public, pushing target plans to 2027. Ahead of these moves, Burry reshaped his portfolio on Monday by trading short positions for put options on various AI-related equities, following a Sept. 14 post where he dismissed AI firm calls for regulation as self-serving.
Why It Matters
Burry's aggressive posture highlights growing institutional skepticism regarding whether massive capital expenditure in AI hardware can translate into sustainable cash flows. As analysts project a potential $4.2 trillion AI revenue deficit over the coming decade, regulatory hurdles and market volatility are complicating timeline expectations for mega-cap tech listings. Investors should closely monitor whether prolonged macroeconomic pressure forces private AI leaders to restructure operational debt before reaching public exchanges.
