Moody’s cautioned last week that heavy capital spending was eroding cash flows at US hyperscalers including Microsoft and Amazon.com.

The global AI trade, alongside a bull run on Chinese technology stocks, has faltered amid doubts over whether data-centre and cloud spending will translate into real cash flows and justify stretched equity valuations.

“I believe much of current and future demand is not driven by end customers, end demand,” said Burry in a post on Substack. The high-profile investor was featured prominently in the 2010 nonfiction book The Big Short, as well as its 2015 film adaptation.

“Much and possibly most is financed, off-balance sheet and not lit. Future revenues are majority financed in a circular arrangement, per the 2026 BIS [Bank for International Settlements] annual report.”