Big Short investor Michael Burry is escalating his warnings about US competitiveness, this time focusing on energy as the binding constraint.
In a new post on X, the investor notes that America cannot sustain long-term economic growth, technological leadership or national security without a massive expansion of reliable power generation, regardless of how AI ultimately plays out.
Burry says his proposal is advice he would give directly to top political leaders if he had access, including Donald Trump, JD Vance, and the U.S. Senate leadership.
“Take a trillion dollars and bypass all the protests and regulations and dot the whole country with small nuclear reactors, while also building a brand-new, state-of-the-art grid for everyone. Do this as soon as possible and secure it all from attack with the latest physical and cybersecurity measures; maybe even create a special Nuclear Defense Force that protects each facility, funded federally.”
Without exponential growth in energy generation, Burry believes that the US won’t overcome its record-level $38.43 trillion national debt.
“This is the only hope of getting enough power to keep up with China, and it is the only hope we have as a country to grow enough to ultimately pay off our debt and guarantee long-term security.”
He notes that the case for nuclear power should not hinge on AI hype or demand forecasts.
“My proposal is that this needs to happen for national security, economic growth and future innovation, regardless of how AI plays out.”
Burry also calls for strict cost discipline and centralized leadership to prevent the project from spiraling out of control.
“Put Elon or me in charge of it. Or someone else that will simply not allow costs to spiral and will move mountains to make sure the buildout happens.”
Last month, Burry highlighted the gap between the US and China in terms of installed electric generation capacity. The investor shared a chart showing that China has a “total power advantage” that cannot be closed quickly.
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