Legendary investor Michael Burry publicly endorsed actor Ben Affleck’s critique of artificial intelligence, arguing that large language models such as ChatGPT and Claude remain fundamentally unreliable. In interviews this week, Burry reiterated his warning of an impending AI bubble, highlighting that many AI startups are investing heavily in data centers and GPUs that risk rapid obsolescence. He also accused several AI companies of using aggressive accounting to inflate revenues, though he stopped short of naming specific outfits. Burry’s alignment with Affleck echoes a broader sense of caution among select institutional investors who question whether AI tools can match human creativity in critical applications.

Microsoft has committed to providing $250 billion in Azure capacity to OpenAI over the next five years, a figure that underscores its deepening partnership with the AI pioneer. In parallel, Oracle secured a $300 billion, five-year deal to host OpenAI workloads on its cloud, intensifying competition for AI infrastructure dollars. While Microsoft generated $25 billion in free cash flow during its most recent quarter—enabling it to self-fund expansion—Oracle’s capex spike to $12 billion last quarter was financed predominantly through long-term debt. Investors assessing both firms note that Microsoft’s more diversified revenue base and stronger profitability metrics may better absorb the risks of building out massive AI data-center capacity.

Microsoft reported 18% year-over-year revenue growth in its fiscal fourth quarter, led by a 51% increase in commercial reservation-based orders (RPOs) to $392 billion. Azure consumption revenue alone climbed 30%, reflecting robust enterprise uptake of AI-enabled services. Despite ongoing constraints on data-center capacity, executives stated that demand remains the primary bottleneck rather than customer hesitancy. To address this, Microsoft more than doubled its cloud infrastructure capex to $34.9 billion in Q1, including $11.1 billion in finance leases, aiming to expand GPU and networking capacity. With a gross margin above 68%, the company appears well positioned to scale its AI offerings without sacrificing profitability.