Michael Burry, the investor known for predicting the 2008 mortgage crisis, posted on X warning market participants that the euphoria around artificial intelligence could result in substantial capital destruction if OpenAI and Anthropic go public.
In his post Burry wrote that, “in the interest of humanity,” markets should experience a sharp decline to prevent the two companies from listing. Replying to a comment he went further, saying the two firms could “suck up and then annihilate” several thousand billion dollars of capital. Burry has previously compared the current AI stock mania to the late‑1990s dot‑com bubble.
Where do the planned IPOs stand?
Both companies filed confidentially with the U.S. Securities and Exchange Commission (SEC) in June, but neither has set a public offering date.
Sam Altman, CEO of OpenAI, has stated that the company does not plan an IPO in 2026. Meanwhile OpenAI is working on a roughly $30 billion private fundraising round and has been discussed at an approximately $1,400 billion (about $1.4 trillion) valuation.
Reports about Anthropic point to a possible November IPO and an approximate $2,000 billion (about $2 trillion) valuation, though timing and terms are not final.
Anthropic’s finances illustrate the scale of AI costs
Anthropic’s most recent financial figures highlight the high cost of competing in AI: the company generated $4.6 billion in revenue in 2025 while posting an operating loss exceeding $8 billion. Its commitments to secure future computing capacity amount to “hundreds of billions of dollars.”
Why this matters
Burry’s warning centers on the risk that very large valuations and continuous, large‑scale capital raises may not be supported by durable revenue and profitability, risking a significant market re‑pricing if investor sentiment shifts. The potential size of the valuations and the capital involved mean any sharp correction could have wide effects on markets.
Portfolio is addressing related investment questions at its Investment Day on October 21 and at the AI & Digital Transformation conference on November 26.
An AI assistant contributed to preparing this article; the final content was edited and verified by a journalist.
