Michael Burry, the investor renowned for predicting the 2008 financial crisis, has struck a chord with actor and filmmaker Ben Affleck by endorsing Affleck's recent critical assessment of artificial intelligence technologies. Burry's agreement with Affleck's standpoint underscores growing scrutiny over AI's practical applications and economic endurance as major players ramp up investments in this sector.
In a social media post on the platform X, Burry shared a segment from Joe Rogan's podcast featuring Ben Affleck, where the actor expressed doubts about the current efficacy of large language models such as ChatGPT, Claude, and Gemini. Affleck contended that these AI models produce output that is fundamentally "not reliable." Burry complimented Affleck as an intelligent individual, emphasizing that the critique was well articulated and resonated with him deeply, even more effectively than Burry himself might have conveyed.
During the podcast discussion, Affleck elaborated that the design of these AI models is geared toward generating average responses, which impairs their ability to replace authentic human creativity. Though he conceded that AI might serve particular limited functions efficiently, he remains unconvinced that it can ever produce genuinely meaningful artistic works, casting doubt on claims that AI could generate entire films independently in the future.
Affleck also raised concerns about the economic sustainability of AI technologies. He highlighted that the progression in performance gains is decelerating, as exemplified by the transition from ChatGPT 4.0 to 5.0, which sees roughly a 25% improvement at the expense of quadrupling electricity and data consumption. This imbalance between increasing costs and diminishing returns leads Affleck to conclude that AI will primarily supplement rather than supplant human artistic endeavors. He characterized AI as a useful tool for automating burdensome or expensive tasks but asserted that core artistic elements will always depend on human input.
Echoing similar cautionary sentiments, Michael Burry has issued multiple warnings about the possibility of an impending AI bubble. He has recently expressed criticism towards prominent technology companies including Microsoft Corp. and Alphabet Inc. for their substantial infrastructure investments, which he warns may soon become outdated and economically untenable. Burry has explicitly disclosed a short position against NVIDIA Corp., labeling it the "purest play" on AI and simultaneously indicating his concern that the company is overly dependent on ongoing AI infrastructure expansion.
Beyond infrastructure concerns, Burry has questioned the accounting practices of leading AI companies, highlighting issues such as "suspicious revenue recognition" and potentially understated depreciation. He described the cyclical funding mechanisms prevalent among these firms as indicative of deceptive financial engineering rather than healthy business growth dynamics.
The Roundhill Generative AI & Technology ETF, which tracks the AI sector, has experienced a significant rise of 41.36% so far in 2025 and an impressive gain of 139.89% over the past five years. Despite such growth, the ETF currently trades at a price-to-earnings ratio of 30, slightly above the S&P 500 average of 28, suggesting a premium valuation. This fund rates highly on Momentum indicators, reflecting favorable short-, medium-, and long-term price trends indicative of continued investor enthusiasm.
Major AI-related stocks contain diverse investor sentiment as market participants balance high valuations with concerns about the long-term viability of current AI business models. Alphabet Inc. shares are priced around $329.85 and $329.55 for different classes, Microsoft Corporation trades near $460.70, and NVIDIA's shares are roughly $186.25, all showing relatively stable trading with minor fluctuations. Despite the upbeat market positioning, the noted skepticism by influential figures like Burry and Affleck introduces an important counterpoint to the otherwise bullish AI narrative.
In summary, the convergence of opinions from investor Michael Burry and actor Ben Affleck highlights a cautious perspective on AI's broader impact. Their shared critique focuses particularly on the technology's current limitations in creativity and reliability, the economic pressures posed by escalating infrastructure costs, and questionable financial reporting within leading AI companies. Such warnings serve as a reminder for investors and observers to remain discerning amid the rapid growth and hype surrounding AI products and services.