Burry Takes Aim at Oracle

Michael Burry, the investor who gained notoriety for his prescient bet against the 2008 housing market, is now targeting Oracle. In a disclosure via his Substack newsletter, Burry revealed that he has been shorting Oracle stock for six months and owns put options, signaling a strong conviction that the database giant's share price will decline.

The AI Infrastructure Gamble

Oracle, traditionally a database software provider, has embarked on an ambitious strategy to transform into a major cloud computing infrastructure provider, aiming to capitalize on the artificial intelligence boom. This pivot involves substantial investments in building large-scale data centers and acquiring expensive Nvidia chips, placing Oracle in direct competition with established players like Amazon Web Services and Microsoft Azure.

Crushing Debt Load

To finance this aggressive expansion, Oracle has accumulated approximately $95 billion in debt, positioning it as the largest corporate borrower outside the financial sector. Burry views this move with skepticism, suggesting that the AI infrastructure Oracle is building could rapidly become obsolete, while the company is saddled with significant debt obligations. He questioned the necessity of these investments, hinting at ego playing a role in founder Larry Ellison's strategy.

Contrasting Strategies

What distinguishes Burry's Oracle short is his avoidance of other AI heavyweights like Meta, Alphabet (Google), and Microsoft. He reasons that these companies possess robust, diversified businesses such as social media, advertising, and office productivity software, providing a crucial safety net. In contrast, Oracle's reliance on its mature database business and its all-in bet on AI infrastructure leave it exposed should the AI trend falter.

Market Doubts Surface

Oracle's stock performance has reflected investor apprehension. Following a significant surge on bullish AI cloud forecasts in September 2025, the gains quickly eroded as analysts scrutinized rising capital expenditures and debt levels. By year-end, the stock had relinquished most of its advance, trading substantially below its peak.

Burry's Proven Track Record

This latest move follows Burry's previous skepticism towards AI high-flyers; he had revealed put options on Nvidia and Palantir in November, both of which saw stock drops. After shuttering his hedge fund, Scion Asset Management, Burry now uses his Substack to share market insights, building on a reputation for identifying potential market bubbles based on deep, contrarian analysis.