Burry Shorts Oracle and Nebius, Warns of Leverage Risks in Tech Cloud Sector
Claire Weston
Michael Burry — the investor behind *The Big Short* — disclosed new short positions in Oracle and AI-infrastructure firm Nebius, warning that off-balance-sheet commitments across the cloud sector are building dangerous hidden leverage.
Who is Burry betting against?
Burry disclosed two new short positions Thursday: Oracle and AI-infrastructure company Nebius.
He entered the Oracle short at $144.63 per share, marking a return to his bearish stance on the company.
This means → he is not targeting one firm's problems. He sees systemic risk across the cloud sector.
What exactly is the risk he is flagging?
Burry's core thesis: tech and cloud companies carry rising leverage through off-balance-sheet commitments — spending obligations that are real but do not appear on the main balance sheet.
In plain terms = the debt on the books looks manageable, but behind it sits a pile of "hidden IOUs" — long-term leases, procurement contracts, capacity reservations — all requiring real cash.
This reflects a deeper concern: the breakneck expansion of AI and cloud infrastructure may have pushed the industry's spend-now, account-later model to a dangerous edge.
Why does the market watch Burry's positions so closely?
Burry is best known as the real-life figure behind *The Big Short* — he bet against subprime mortgages before the 2008 financial crisis and was proven right.
Every new position he discloses draws intense market attention, especially when the target sits in a hot sector.
This means → the next focus is whether Oracle and Nebius can address the off-balance-sheet concern head-on in their earnings. A weak response could let the short thesis spread across the broader cloud space.
Content is for reference only, not financial advice.