Michael Burry sees problems for AI hiding in a corner of the private credit universe. Famed investor Michael Burry says that there's a growing risk of problems in AI-linked debt securities that have piled up in a corner of the private credit universe. Burry has been vocal about his concerns related to the AI boom and the problems he sees percolating in the private credit industry. In April, he said both private credit and private equity are nearing the "end of the road." Now, Burry wonders what could force a "reckoning" for the private credit firms that have rushed to finance the AI infrastructure buildout.