'Big Short' Michael Burry: Broadcom's $100 billion deal with Anthropic has hidden financial risks, won't buy A-company stock next week

November 11 — Michael Burry, the real-life inspiration behind "The Big Short," analyzed and pointed out that Broadcom's $161 billion hardware deal with Anthropic poses major hidden risks, as the agreement transfers part of the financial risk to insurance companies. He also noted that Broadcom provided Anthropic with an additional $42 billion loan, on top of its existing commitments.

Michael Burry reiterated that he has no intention of buying Anthropic shares when it goes public next week. "For the good of humanity, the market should fall sharply to stop the OpenAI and Anthropic IPOs."

Previously reported, Michael Burry stated that Anthropic's IPO prospectus (S-1) "reveals catastrophic and fragile systemic risks across the entire AI boom (not just Anthropic alone)." He believes Anthropic has a circular and interconnected financing structure: the supercomputing giant simultaneously plays multiple roles as Anthropic's "lender, supplier, distributor, and shareholder." Moreover, Anthropic's quarterly revenue growth rate dropped from about 144% in the previous quarter to about 46%, while computing costs surged significantly (about 78%).