Michael Burry, a prominent investor, has expressed concern regarding the growing influence of artificial intelligence (AI) in the financial industry. He alleges that “hyperscalers,” a group of large technology companies, are strategically extending the lifespan of their computer equipment through enhanced maintenance and upgrades. This, according to Burry, is contributing to artificially inflated earnings reports. He suggests this practice, while potentially beneficial to the industry, could lead to a distorted view of true profitability and potential market manipulation. His statements highlight a potential challenge to traditional valuation models.
Credits: US Top News and Analysis
