00:00It's Benzinga, bringing Wall Street to Main Street
00:02The Big Short investor Michael Burry is warning against roughly $1 trillion in artificial
00:07intelligence spending, comparing the focus on large language models to a 19th century
00:11speculative bubble.
00:13Burry argues that large language models are built backward because they attempt to scale
00:17language into reason, leaving them prone to hallucination.
00:21He favors reasoning-oriented approaches from Meta and Google that emphasize logic and understanding
00:26over text prediction.
00:26Burry points to Google's alpha geometry and Meta's coconut as examples.
00:31He also compares Silicon Valley's AI hardware spending to 1880s speculation, calling the
00:36current environment a parameter trap marked by supply-side gluttony and massive capital
00:41misallocation.
00:42For all things money, visit Benzinga.com
