「The Big Short」 and Legendary Trader Warn: AI Frenzy Eerily Echoes Pre-Dot-Com Bubble Bust

May 11 — Michael Burry, the "Big Short" legend who famously predicted the U.S. housing crash, warned this week that today’s stock market obsession with artificial intelligence echoes the final days of the dot-com bubble. In a post on his personal blog, Burry noted the market has stopped reacting logically to economic data like jobs reports or consumer confidence. “They just keep going up because they’ve been going up, based on a two-syllable thesis (AI) that everyone seems to grasp… It feels like the final months of the 1999-2000 dot-com bubble.” Meanwhile, legendary macro trader Paul Tudor Jones — founder of Tudor Investment Corporation — also drew parallels between the current AI-fueled rally and the run-up to the dot-com burst, but said the bull market may still have room to run. Speaking on CNBC’s *Squawk Box*, Jones said the current environment feels like 1999 — roughly a year before tech stocks peaked in early 2000. He reckons the rally could keep going for another one to two years, but warned: if valuations keep climbing, the eventual correction could be brutal. Jones added that if the market rose another 40%, the market cap-to-GDP ratio could hit a staggering 300% or even 350%. “Everyone knows deep down that at that point, there’d be some kind of stunning correction.”