The 'Big Short' Michael Burry: Broadcom’s $100 billion deal with Anthropic carries hidden financial risks, and he will not buy shares of Anthropic next week.

Michael Burry, the prototype of "The Big Short", analyzed that Broadcom’s $161 billion hardware deal with Anthropic has major hidden risks, with the agreement shifting part of the financial risk to insurers. Specifically, Anthropic needs Broadcom’s chips to run Claude but does not purchase them directly. Wall Street banks and Blackstone injected $63 billion into an independent company, which then bought chips from Broadcom and leased them to Anthropic. Over the entire term of these lease agreements, Anthropic will pay around $161 billion in rent for Broadcom’s equipment, with part of the funds coming from Broadcom itself. Broadcom has agreed to provide Anthropic with up to $42 billion in loans, which can only be used to pay rent for Broadcom’s devices. Michael Burry reiterated that he has no intention of buying Anthropic’s stock when it goes public next week. "For the benefit of humanity, markets should plunge sharply to stop the IPOs of OpenAI and Anthropic." Earlier, Michael Burry said Anthropic’s IPO prospectus (S-1) "exposes catastrophic systemic risks in the entire AI boom, not just Anthropic alone." He believes Anthropic has a circular and interconnected financing structure: hyperscalers act as its lender, supplier, channel, and shareholder simultaneously. Moreover, Anthropic’s quarterly revenue growth slowed from around 144% to approximately 46%, while its computing costs rose sharply by around 78%.