Michael Burry warns Microsoft may hide $3T in AI data-center liabilities
Michael Burry, the investor who predicted the 2008 housing crash, claims Microsoft and other tech giants are underreporting AI-related liabilities. In a blog post, Burry argues that Microsoft’s $3 trillion in off-balance-sheet AI data-center obligations—spurred by aggressive AI investments—could pose financial risks. He criticizes Big Tech CEOs for assuming their spending will be protected by…
Key points
- Michael Burry alleges Microsoft may have $3 trillion in unreported AI data-center liabilities
- Microsoft’s Azure revenue hit $100B annually, with a $678B backlog, per report
- MSFT stock rose 12% YTD despite Burry’s criticism, backed by AI-driven revenue growth
Microsoft’s stock has risen 12% year-to-date, buoyed by AI-driven revenue growth and analyst upgrades, though it remains a laggard compared to peers like Nvidia. Burry’s warning contrasts with the market’s view that Microsoft’s AI investments will pay off, as evidenced by its trailing P/E ratio of 30.2 and forward P/E of 26.6—lower than the sector median. The debate hinges on whether Microsoft’s spending is justified by future returns or an unsustainable bet.
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Microsoft Stock Alert: Michael Burry Warns of $3 Trillion in AI Liabilities
finance.yahoo.com · 13 October 2026
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