Michael Burry Says Big Tech Is 'Spending Wildly' on AI Because CEOs Expect to Be 'Granted an Oligopoly' That Can't Fall Radhika Anilkumar Nadig Thu, October 8, 2026 at 12:30 PM EDT 6 min read SPCX -3.49% AMZN -2.14% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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Michael Burry, 'The Big Short'-fame investor, said Tuesday that big technology companies' data center spending spree is driven by an expectation that the industry's winners will be protected as an oligopoly too large to fail.
"The only reason the CEOs of these tech monopolies are spending wildly on data centers like they are is because they assume they will be granted an oligopoly that is too big [to] fail," Burry said in a post on X.
The only reason the CEOs of these tech monopolies are spending wildly on data centers like they are is because they assume they will be granted an oligopoly that is too big too fail.
— Cassandra Unchained (@michaeljburry) October 6, 2026
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JPMorgan estimates AI capital spending could rise from roughly $700 billion this year to $1 trillion next year, while Goldman Sachs expects the five biggest hyperscalers to issue about $250 billion in bonds this year and $400 billion in 2027.
Space Exploration Technologies Corp. is reportedly seeking $40 billion in loans and debt, led by Apollo Global Management , to buy Nvidia Corp. chips, according to the Financial Times.
President Donald Trump's Sept. 29 executive order, "Inaugurating the Era of Super Intelligence," said frontier systems have outgrown the label "artificial intelligence" and told federal agencies to start calling the technology "Super Intelligence."
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At a rally Saturday in Vandalia, Ohio, the president cast data centers as a race with China.
He has also floated a "dividend" for communities that host data centers and called the facilities "the oil" of the next 25 years.
Amazon.com Inc., Alphabet Inc., and Microsoft Corp. are on track to spend roughly $590 billion to $600 billion on capital expenditures this year, much of it on data centers and AI infrastructure.
Meta Platforms Inc. has reportedly described some of its AI data centers to the IRS as "pilot models" to claim federal research tax credits, which cut its tax bill by $3.9 billion in 2025, according to The New York Times.
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