Investor Michael Burry has warned that the Trump administration cannot allow the artificial intelligence infrastructure boom to collapse.
He described the sector as a crucial foundation holding up the US economy.
Burry argued that US leadership and momentum in artificial intelligence have become central to domestic economic strength.
At the same time, he maintains short positions on several major tech companies driving the sector.
"Trump and his team know that the AI narrative and the buildout is the only thing keeping this economy going, and the most positive thing happening this year," Burry said.
He also questioned what concrete steps federal officials could take to shield the industry from a potential market downturn.
"They cannot afford to let it fall," he added.
Policy Push and Market Skepticism
The warning comes as President Donald Trump elevates American AI leadership into a top economic and national security mandate.
His administration has pushed federal agencies to accelerate AI integration, expand domestic microchip infrastructure, and secure an operational advantage over foreign competitors like China.
Despite the policy focus, Burry remains skeptical of the massive capital expenditures pouring into tech giants.
Disclosures indicate he has taken short positions against major AI players, including Nvidia, Oracle, Palantir, Nebius, Micron, CoreWeave, and the iShares Semiconductor ETF.
Financial records also show recent high-volume trading by President Trump himself, who executed over 1,000 trades in July.
Trump sold between $5 million and $25 million in both Microsoft and Amazon before reacquiring smaller stakes, while also trading shares in Nvidia, Meta, Oracle, and Salesforce.
