Michael Burry: $573B AI Loop Mirrors 2000 Telecom Bust

Michael Burry flagged an Ares Capital AI financing report that tracked $573B in AI financing over the last 12 months, all routed through eight companies that lend to one another, guarantee each other's debt and buy from each other. The structure collapses the moment AI spending slows, the same 2000 telecom fiber optic bubble circular financing and guarantees pattern that triggered mass defaults when revenue missed targets. Markets sit in the first stage of grief, with guarantees likely called precisely when backers are weakest.