“Big Short” investor Michael Burry says risks tied to private credit could undermine parts of the AI-driven investment boom. According to coverage from Business Insider and Yahoo News, Burry points to private credit holdings concentrated in certain insurance companies that are owned by private equity (PE) firms. The concern is that these PE-owned insurers hold large amounts of debt securities, including instruments connected to the broader AI investment cycle. If market conditions tighten or underlying borrowers face stress, he argues, the value and liquidity of those debt holdings could worsen, creating knock-on effects. The reports describe Burry’s view as focused on the potential vulnerabilities in how private credit is positioned—rather than on AI technology directly—highlighting the role that insurance-company balance sheets and debt exposure can play during downturns. The outlets present his comments as a warning that the structure of private credit could be a “lurking” threat, emphasizing that the issue centers on debt securities held by PE-linked institutions. The reporting does not provide new quantified results, but it summarizes his stance and the type of holdings he is concerned about.