Big Short investor Michael Burry believes that tech titan Apple should acquire a Google and OpenAI rival before it turns profitable.
In a new post on X, the controversial short-seller believes Apple has enough cash to acquire the Claude creator Anthropic.
“Apple should buy Anthropic, good culture fit, and Anthropic just starting to race ahead, will be cash flow positive soon. Apple can afford it for now.”
Data shows that as of December 2025, Apple holds a cash position of about $67 billion. But it currently has a market cap of $3.83 trillion.
Meanwhile, Anthropic is reportedly gearing up for an IPO this year at a $300 billion valuation with a $14 billion annual revenue run rate.
The investor also says advances in model compression could eventually push cutting-edge AI capabilities directly onto consumer devices, which could spell trouble for large language model (LLM) developers.
“Compression means that edge devices (iPhone, PC) will run the latest models easily in time because human knowledge utility is a pond, and LLMs+ are selling an ocean.”
In December, Atreides’ Gavin Baker said that edge AI is the scariest bear case for the AI boom, as the technology could compress the potential revenue captured by hyperscalers.
Looking at the broader picture, Burry believes that there’s no demand for a superintelligent AI.
“No one will pay for the singularity. There is no end-economic demand for it. AIs spinning up a knowledge spiral is a human nightmare, not a human demand.”
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