The AI infrastructure supercycle, despite its magnitude, remains cyclical in nature and will eventually face constraints like any other cycle

"Should hyperscalers slow or halt the aggressive pace of capex deployment, many borrowers across the supply chain could struggle to replace lost revenue and service their debt. Circular financing deals are creating their own share of concerns too."

"Burry believes that if the demand slows, companies taking on heavy debt and long-term commitments could be in serious trouble. Nebius is a company that he thinks fits this profile. The company raised its 2026 capital spending guidance to a range of $20 billion to $25 billion, while its long-term debt more than doubled to $8.4 billion."

"A Supercycle Remains A Cycle"