Michael Burry, known for predicting the 2008 housing crash, has taken massive put positions against major AI stocks like Nvidia and Palantir, signaling his belief that the AI sector is in a valuation bubble. He argues that AI-driven companies are overstating earnings by using unrealistically long depreciation schedules for rapidly aging AI hardware, creating an accounting distortion that inflates profits. While Wall Street and tech leaders strongly dispute his claims, Burry believes the combination of hype, speculative behavior, and aggressive accounting mirrors past bubbles. This episode breaks down his thesis, the pushback against it, and what regular investors can learn from his AI short.