Michael Burry — the investor known for predicting the housing meltdown ahead of 2008 — has turned his attention to one of the market's most beloved themes: artificial intelligence.

Burry recently deregistered his hedge-fund firm, Scion Asset Management, removing it from routine regulatory disclosures. But he remains actively investing, and he is doubling down on what he sees as the next major mispricing in markets.

Central to that view is Phil Clifton, Scion's former associate portfolio manager, whose research underpins the skepticism. Clifton argues that while generative AI adoption is accelerating, the economics behind the industry's massive infrastructure buildout have yet to justify the cost.

In his farewell letter to Scion investors in late October, Burry called Clifton "the most

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