Michael Burry says the AI boom is masking fake profits through accounting tricks

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If the AI revolution is real, why are companies changing the way the books are counted? 2–3 year hardware lifespan suddenly becomes 5–6, profits magically rise.


Michael Burry Just Exposed Big Tech’s “Profit Illusion” 🚨

Michael Burry – yes, that Burry who called the 2008 crash – just accused Big Tech of pulling one of Wall Street’s oldest tricks.

Here’s what’s happening:

Companies like $META, $GOOG, $AMZN, $MSFT, and $ORCL are spending billions on Nvidia chips and AI servers.

Normally, that gear wears out in 2–3 years – but suddenly, they’re saying it lasts 5–6.

Sounds harmless… until you realise this small accounting tweak makes their earnings look way stronger than they really are.

Burry says these “hyperscalers” will understate $176 billion worth of depreciation between 2026 and 2028 – effectively inflating profits that don’t exist.

By 2028, he believes $ORCL could be overstating earnings by 27%, and $META by 21%.

His warning?

“Understating depreciation by extending useful life of assets artificially boosts earnings – one of the more common frauds of the modern era.”

If he’s right, the AI boom might not be the clean growth story Wall Street is selling.

It could be the next accounting mirage.

Burry drops full details on November 25th.

I’ll be watching that one closely. 👀