Michael Burry's warning on AI stocks echoes Enron investor Jim Chanos' concerns. Burry believes hyperscalers may overstate earnings due to their big investments in AI infrastructure.

Michael Burry, a well-known short-seller, has warned about hyperscalers like Meta and Oracle, echoing concerns raised by Jim Chanos, who shorted Enron. Burry believes that hyperscalers' massive spending on AI infrastructure could lead to overstated earnings and potential losses. Chanos has also expressed similar concerns about the rapid growth of AI spending among hyperscalers, noting that it may not translate to economic returns.