Michael Burry is SHORTING TESLA Now

The Rundown is the most trusted AI newsletter in the world, with 1,000,000+ readers and exclusive interviews with AI leaders like Mark Zuckerberg, Demis Hassibis, Mustafa Suleyman, and more.

Their expert research team spends all day learning what’s new in AI and talking with industry experts, then distills the most important developments into one free email every morning.

Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses – tailored to your needs.

Sign up to start learning.

Amazon Web Services launched its Trainium3 UltraServers powered by AWS's first 3nm AI chip, delivering up to 4.4x more compute performance, 4x greater energy efficiency, and almost 4x more memory bandwidth than Trainium2 UltraServers. The timing couldn't be more strategic—as OpenAI scrambles in "code red" mode and AI infrastructure costs spiral out of control, AWS is offering a fundamentally different value proposition: world-class AI training at a fraction of the cost.

Trn3 UltraServers scale up to 144 Trainium3 chips, delivering up to 362 FP8 PFLOPs with 4x lower latency, while customers including Anthropic, Karakuri, Metagenomi, NetoAI, Ricoh, and Splash Music are reducing training and inference costs by up to 50%. Perhaps most impressively, Amazon Bedrock is already serving production workloads on Trainium3, demonstrating the chip's readiness for enterprise-scale deployment. This isn't vaporware—it's shipping today.

Why This Spells Trouble for OpenAI:

The implications for OpenAI's "code red" situation become clearer when you examine the economics:

• AWS says the chips and systems are 40% more energy efficient than the previous generation, with customers like Anthropic already using the third-gen chip and significantly cutting their inference costs
• EC2 UltraClusters 3.0 can connect thousands of UltraServers containing up to 1 million Trainium chips—10x the previous generation
• AWS collaborated with Anthropic to connect more than 500,000 Trainium2 chips into the world's largest AI compute cluster—five times larger than the infrastructure used to train Anthropic's previous generation of models
• Trainium4 is already in development, designed to bring at least 6x the processing performance (FP4), 3x the FP8 performance, and 4x more memory bandwidth

The Strategic Shift:

Amazon is using Trainium3 to pull price-sensitive teams back under its roof, with the basic pitch being lower cost per unit of work while keeping everything inside AWS. For OpenAI, which burns cash on expensive Nvidia GPUs while competitors train models more efficiently, this represents an existential challenge. When your primary cloud partner is also empowering your biggest competitor (Anthropic) with cheaper, faster infrastructure, the calculus changes dramatically.

While OpenAI publicly celebrates 800 million weekly users, beneath the surface a more troubling picture emerges. Average time spent per daily active user in the U.S. dropped 22.5% since July, while average sessions per DAU fell 20.7% during the same period. This isn't just noise in the data—it's a fundamental shift in user behavior that explains why Sam Altman declared "code red."

ChatGPT's market share in generative AI dropped to 62.5% in 2025 from previous highs, with its share falling from 76% in January 2024 to 59.5% by January 2025, while Microsoft Copilot captured 14.3% of the market. The competitive pressure isn't just theoretical—users are actively choosing alternatives. Google Gemini is growing rapidly, with 450 million monthly active users and about 35 million daily users, though ChatGPT's daily active users are over 5 times that of Gemini.

The Gemini Effect:

The timing of ChatGPT's decline correlates with Google's aggressive push:

• In September 2025, Google's Gemini app surged to the top of both U.S. app store charts, gaining 12.6 million downloads, up 45% from August's 8.7 million, with the catalyst being Gemini 2.5 Flash Image, Google's new image editing model that went viral
• On September 12, Gemini knocked ChatGPT from its position as the No. 1 app on the U.S. App Store, a position ChatGPT had held for months
• Apptopia's data reveals ChatGPT's metrics were declining before Gemini's rise

Why Users Are Leaving:

The shift isn't just about competition—it's about product quality deterioration:

• Reviews noted that GPT-5 provided "more direct, concise responses" compared to GPT-4o's slightly more detailed and personable style, with users complaining the new model felt "robotic," "too formal," and lacking warmth
• Users increasingly describe ChatGPT's coding outputs as "lazy," often providing incomplete snippets or refusing to refactor entire scripts, a frustration that has driven serious engineers into Anthropic's arms
• For the average user, Gemini is now just a button press away in Gmail, Docs, and Android, with the friction of logging into a separate ChatGPT app losing out to the seamless integration of Gemini Workspace

The best marketing ideas come from marketers who live it. That’s what The Marketing Millennials delivers: real insights, fresh takes, and no fluff. Written by Daniel Murray, a marketer who knows what works, this newsletter cuts through the noise so you can stop guessing and start winning. Subscribe and level up your marketing game.

Sign Up Free

"Tesla's market capitalization is ridiculously overvalued today and has been for a good long time," Burry, who rose to fame for his call on a housing market bubble in the 2000s, wrote to subscribers of his new paid Substack. Coming from the investor immortalized in "The Big Short," these words carry weight—not just for Tesla shareholders, but for the entire AI-powered tech ecosystem.

As of late November 2025, Tesla's market value stood around 1.43trillion—makingittheworld′smostvaluableautomakerandmorethanfivetimeslargerthanToyota′sroughly260 billion valuation—while CEO Elon Musk holds about 13% of the company's outstanding shares. Burry pointed out that Tesla dilutes shareholders at a rate of 3.6% each year and doesn't offer buybacks, and he said the vote to accept CEO Elon Musk's $1 trillion compensation plan means investors should expect to get diluted further.

The Narrative Shifting Problem:

Perhaps Burry's most cutting observation goes beyond numbers to market psychology:

• "For years, Tesla was valued as an automotive growth story. As vehicle deliveries growth stopped in 2024 and reversed in 2025, the narrative shifted heavily toward the Cybercab and Optimus," with Burry characterizing this as: "the Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots—until competition shows up"
• Tesla trades on a future described by Musk as one in which the company dominates the self-driving car, artificial intelligence (AI), and robotics industries, with Musk saying there will be 10 billion humanoid robots sold by 2040, each with a price tag of 20,000to25,000, with Tesla's Optimus robot being a leader in the industry

The AI Connection:

Burry's Tesla critique matters for the broader AI market because it illuminates a dangerous pattern: companies pivoting to AI narratives to justify unsustainable valuations. Recently, Burry has stepped up criticism of technology heavyweights such as Nvidia and Palantir Technologies, questioning the cloud infrastructure boom and accusing major providers of using aggressive accounting to inflate profits from their massive hardware investments.

When the investor who called the 2008 housing crisis starts drawing parallels between today's AI valuations and historical bubbles, it's worth paying attention—especially as OpenAI burns billions while competitors like DeepSeek achieve comparable results for $6 million, and as AWS offers infrastructure at half the cost of traditional GPU-based training.

In a statement that sent shockwaves through the developer community, Anthropic announced it is acquiring Bun, the breakthrough JavaScript runtime, marking the AI company's first acquisition and a strategic bet on controlling the entire AI coding infrastructure stack. The move comes as Claude Code—Anthropic's AI coding assistant—reached $1 billion in run-rate revenue just six months after public launch, positioning the company as OpenAI's most formidable competitor.

Founded by Jarred Sumner in 2021, Bun is dramatically faster than the leading competition, and as an all-in-one toolkit—combining runtime, package manager, bundler, and test runner—it's become essential infrastructure for AI-led software engineering. The acquisition represents more than just adding talent—it's about vertical integration at a moment when AI coding tools are exploding in value.

The Strategic Calculus:

The numbers tell the story of why Anthropic made this move:

• Claude Code reached $1 billion in run-rate revenue in only 6 months, becoming a critical tool for category-leading enterprises including Netflix, Spotify, KPMG, L'Oreal, and Salesforce
• Bun gets more than 7 million monthly downloads and has earned over 82,000 stars on GitHub
• Bun will remain open source and MIT-licensed, ensuring continued community access while Anthropic gains control of a critical bottleneck
• Faster performance, improved stability, and new capabilities for all Claude Code users are promised

Why OpenAI Should Worry:

While OpenAI fights to improve ChatGPT's user experience and battles declining engagement metrics, Anthropic is playing a different game entirely. By acquiring Bun, Anthropic isn't just improving its product—it's building a moat. When your AI coding assistant controls the runtime environment where the code actually executes, you create lock-in that goes far beyond model quality.

The timing is particularly pointed: as OpenAI declares "code red" and delays advertising and new product initiatives to focus on core experience, Anthropic is aggressively expanding both horizontally (new customers) and vertically (infrastructure control). With AWS backing and Trainium3 chips delivering 50% cost savings, Anthropic can undercut OpenAI on price while offering developers a more integrated, performant experience.

The AI economy is booming, and smart entrepreneurs are already profiting. Subscribe to Mindstream and get instant access to 200+ proven strategies to monetize AI tools like ChatGPT, Midjourney, and more. From content creation to automation services, discover actionable ways to build your AI-powered income. No coding required, just practical strategies that work.

Subscribe to Get Your Free Guide

In a statement that sent shockwaves through the developer community, Anthropic announced it is acquiring Bun, the breakthrough JavaScript runtime, marking the AI company's first acquisition and a strategic bet on controlling the entire AI coding infrastructure stack. The move comes as Claude Code—Anthropic's AI coding assistant—reached $1 billion in run-rate revenue just six months after public launch, positioning the company as OpenAI's most formidable competitor.

Founded by Jarred Sumner in 2021, Bun is dramatically faster than the leading competition, and as an all-in-one toolkit—combining runtime, package manager, bundler, and test runner—it's become essential infrastructure for AI-led software engineering. The acquisition represents more than just adding talent—it's about vertical integration at a moment when AI coding tools are exploding in value.

The Strategic Calculus:

The numbers tell the story of why Anthropic made this move:

• Claude Code reached $1 billion in run-rate revenue in only 6 months, becoming a critical tool for category-leading enterprises including Netflix, Spotify, KPMG, L'Oreal, and Salesforce
• Bun gets more than 7 million monthly downloads and has earned over 82,000 stars on GitHub
• Bun will remain open source and MIT-licensed, ensuring continued community access while Anthropic gains control of a critical bottleneck
• Faster performance, improved stability, and new capabilities for all Claude Code users are promised

Why OpenAI Should Worry:

While OpenAI fights to improve ChatGPT's user experience and battles declining engagement metrics, Anthropic is playing a different game entirely. By acquiring Bun, Anthropic isn't just improving its product—it's building a moat. When your AI coding assistant controls the runtime environment where the code actually executes, you create lock-in that goes far beyond model quality.

The timing is particularly pointed: as OpenAI declares "code red" and delays advertising and new product initiatives to focus on core experience, Anthropic is aggressively expanding both horizontally (new customers) and vertically (infrastructure control). With AWS backing and Trainium3 chips delivering 50% cost savings, Anthropic can undercut OpenAI on price while offering developers a more integrated, performant experience.