Famed investor Michael Burry revealed a bearish bet against Oracle. His Scion Asset Management purchased put options, which gain value if the software giant's stock falls. Burry also disclosed a direct short position built over the past six months.

Oracle shares dipped slightly in premarket trading following the news. Burry criticized the company's strategic direction, suggesting its aggressive data center expansion is driven by ego rather than sound business fundamentals. This move comes after a volatile stretch for Oracle.

The stock rallied 36% in September on bullish AI cloud forecasts but surrendered those gains as investors grew wary of the massive capital spending required and the company's $95 billion debt load. Burry has also shorted Palantir, targeting companies he sees as overexposed to AI hype. However, he is avoiding larger tech giants like Meta and Microsoft, believing their core businesses are too dominant to be pure shorts.

His action raises questions about whether Oracle's ambitious AI infrastructure bet can deliver returns commensurate with its financial risk.