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Michael Burry adds short position in Oracle amid AI infrastructure spending
Burry’s bet centers on Oracle’s roughly $260 billion in future data center lease commitments, alongside a -$23.7 billion free cash flow result in fiscal 2026.
Investor Michael Burry has taken on a new short position in Oracle, betting against the company’s stock as investors weigh the costs of scaling artificial intelligence infrastructure. The move comes as Oracle faces questions over whether its rapidly growing AI business can generate enough cash to justify the capital required to support data center expansion, according to Yahoo Finance.
Burry’s concern is tied to the balance between future infrastructure obligations and cash generation. The article says Oracle is associated with roughly $260 billion of future data center lease commitments, which would represent contractual obligations that must be funded over time.
Oracle’s recent cash flow and leverage add to the debate. Yahoo Finance notes that Oracle generated $32 billion in operating cash flow during fiscal 2026, but free cash flow came in at -$23.7 billion as capital spending surged to expand cloud infrastructure, and the company ended the year with about $129.5 billion of debt.
The piece also highlights how market sentiment has shifted around Oracle’s strategy. It says the stock is down about 25% year-to-date, after dropping to around $115 in late July, even as the selloff was attributed to concerns about required spending rather than weak demand.