Michael Burry Points Out Systemic Risks in AI Frenzy

On October 28, Michael Burry stated through his Substack account that the recently released IPO prospectus from Anthropic reveals catastrophic systemic risks inherent in the entire AI frenzy. The main reasons include: 1. Massive computing power commitments, with Anthropic signing approximately $537 billion in computing power/infrastructure purchase and lease agreements, with pending transactions potentially adding hundreds of billions more, bringing the total scale close to $800 billion, about 12 times its annualized revenue run rate; 2. Cyclical and interconnected financing structures, where supercomputing giants simultaneously act as lenders, suppliers, distributors, and shareholders for Anthropic, creating highly interconnected financing arrangements that could lead to ecological fragility during periods of slowed growth; 3. Slowing growth and accelerating costs, with quarterly revenue growth rates dropping from about 144% to around 46%, while computing costs have risen by approximately 78%. Burry noted that the S-1 data as of June 30 failed to reflect changes in Q3 and beyond, emphasizing that the risks lie in the system's cyclicality and connectivity, rather than purely technical issues.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.