Remember Danny Moses? He’s one of the guys from “The Big Short” who made bank betting against the housing market in 2008. Well, he’s back with some thoughts on AI, and spoiler alert: he thinks we’re in bubble territory again.
Now before you roll your eyes and mutter “here we go again,” Moses isn’t some doom-and-gloom prophet screaming from the rooftops. He’s actually pretty measured about it. Yes, he thinks there’s an AI bubble forming, but he’s not telling everyone to run for the hills. Instead, he’s basically saying “hey, maybe do your homework before throwing money at anything with ‘AI’ in the name.”
His take? The AI growth story is totally real – like, genuinely revolutionary stuff is happening. But (and it’s a big but), the math is starting to get wonky. Sound familiar? It should, because Moses is drawing parallels to the dot-com era, when everyone was convinced the internet would change everything (which it did) but also thought any company with a website was worth billions (which they weren’t).
“The growth was real, but the math didn’t work,” Moses told Business Insider. “And I think that we’re reaching a point where the math is starting not to work.”
So what’s his game plan? Stick with the big dogs who actually have their act together. We’re talking Amazon, Google, Meta, and Microsoft – the companies that can dial back their AI spending tomorrow and still be printing money. These aren’t your sketchy startups burning through venture capital faster than a Tesla in ludicrous mode.
Moses is particularly side-eyeing companies like Oracle (too much debt, too much cash needed) and the more volatile plays like Super Micro Computer. Basically, if a company’s entire future depends on AI spending continuing at current levels, maybe pump the brakes.
Here’s where it gets interesting though – Moses is actually bullish on uranium. Why? Because all this AI infrastructure needs power, and lots of it. Nuclear power is looking pretty attractive when you need to keep massive data centers humming 24/7. The catch? This isn’t a get-rich-quick scheme. The uranium play is more like a slow-cooked investment that might take years to really pay off.
“There’s a mismatch in the timing of how people think that companies will experience AI growth and actually the infrastructure that it’s going to take to power it,” he explains.
The bottom line? Moses isn’t saying AI is fake or that you should short everything. He’s saying be smart about it. The winners and losers are starting to separate, and investors are finally figuring out that not every AI stock is created equal.
It’s like the old saying: when everyone’s getting rich quick, someone’s about to get poor quick. Moses just wants to make sure it’s not you.