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On June 12, Commerce Secretary Howard Lutnick sent Anthropic a letter giving the company 90 minutes to disable two of its most powerful AI models for every customer it had, anywhere in the world. Anthropic confirmed it complied. Two weeks of negotiations in Washington followed.On June 26, Lutnick sent Anthropic another letter. Anthropic confirmed the outcome on X: limited access to Mythos 5, the company’s strongest cybersecurity model, restored for a defined group of American organizations. Fable 5, Anthropic’s broader general-purpose frontier model, remains offline.What Howard Lutnick’s June 26 letter said about Mythos 5Lutnick wrote that he had “determined that appropriate safeguards are in place to permit certain trusted partners to access the Claude Mythos 5 Model,” TechCrunch reported. Semafor first reported the letter.The renewed access covers approximately 100 U.S. organizations, including government agencies and private companies, many of them Fortune 500 firms, for defensive cybersecurity purposes. Non-American employees at those approved organizations are also cleared to use the model.Anthropic confirmed the development in a post on X:”Since June 12, we’ve been working closely with the US government to restore access to Claude Mythos 5 and Fable 5. Today, the government notified us that Mythos 5, our strongest cybersecurity model, can be redeployed to a set of US organizations that operate and defend critical infrastructure. We’re restoring access for these organizations quickly, and we’re continuing to work with the government to expand access to Mythos 5 and make Fable 5 available for general use again.”More AI:Goldman Sachs has blunt message for AI stock investorsMicrosoft CEO sends a blunt warning on AI and the tech ecosystemThe next AI infrastructure race has nothing to do with chipsFable 5, Anthropic’s most recent general-purpose frontier model, is not part of this restored access. CNN reported that conversations between Anthropic and the government are expected to continue, with Fable 5 access still under negotiation.How the June 12 Mythos and Fable 5 ban came aboutOn June 9, Anthropic launched Fable 5 publicly and opened limited access to Mythos 5 through Project Glasswing, its restricted program for critical infrastructure partners. Three days later, the White House called Anthropic and said the models posed a national security threat. The company had 90 minutes to disable them.As TheStreet reported, Amazon CEO Andy Jassy had flagged to administration officials that Amazon researchers had used Fable 5 to extract information related to cyberattacks. The Commerce Department subsequently sent Anthropic its export control directive. Anthropic said the letter provided no detailed national security explanation.Anthropic announced the shutdown on X the same evening.”The US government, citing national security authorities, has issued an export control directive to suspend all access to Fable 5 and Mythos 5 by any foreign national, whether inside or outside the United States, including foreign national Anthropic employees. The net effect of this order is that we must abruptly disable Fable 5 and Mythos 5 for all our customers to ensure compliance.”Anthropic called the restriction “a misunderstanding” and said it disagreed that the jailbreak finding warranted pulling a commercial model deployed to hundreds of millions of people. Senior engineers and scientists flew to Washington to work with the Commerce Department and the Office of the National Cyber Director.

The clearance covers approximately 100 U.S. organizations, including government agencies and private companiesHenry/Getty Images

Why Mythos 5 and its cybersecurity capabilities drove the disputeMythos 5 is Anthropic’s strongest cybersecurity model. Before the shutdown, it was available through Project Glasswing to partners including Cisco and JPMorgan Chase.The model can autonomously discover software vulnerabilities at machine speed. Before it was pulled back, it had identified a 27-year-old vulnerability in OpenBSD, a 16-year-old flaw in FFmpeg, and thousands of other high-severity weaknesses across major operating systems and web browsers.That capability is the core of the dispute. A model that finds vulnerabilities this quickly is useful for defenders. It raises direct concerns about what adversaries could do with the same tool.An authorized red-team evaluation at the NSA on June 11 reportedly showed Mythos infiltrating nearly all of the agency’s classified systems within hours, an outcome that reportedly accelerated the June 12 directive.The June 26 clearance reflects the government’s answer to that dual-use problem for now: access limited to organizations defending the infrastructure that the model is most likely to be used against.The OpenAI parallel and what the Mythos 5 decision signals for AI regulationThe Mythos 5 clearance arrived on the same day the Trump administration separately asked OpenAI to limit the rollout of GPT-5.6. OpenAI CEO Sam Altmanwrote on X that the staggered release was “bad news,” as the company had planned an open-access launch. As TheStreet reported, the administration is now requiring early government access to frontier models before they reach the public.The two cases involve different companies and different circumstances, but both show Washington moving from reactive to preemptive in how it handles the most capable AI systems. Frontier model releases above a certain capability threshold are now being reviewed and gated, at least informally, before they reach general users.For Anthropic, the June 26 letter is a partial win after two weeks of negotiating while its flagship products sat offline. Mythos 5 is back for 100 organizations. Fable 5 is still the open question.The 90-minute shutdown that started this took two weeks to partially undo. A full restoration may take longer.Related: White House latest verdict flips script on Anthropic

As mortgage rates have remained consistently high since the middle of May, attention in the housing market continues to focus on the affordability crisis that began in 2022, as post-pandemic inflation became the primary focus of federal monetary policy.For homebuyers and sellers, that means business continues to be sluggish as the average person’s finances simply do not provide a compelling rationale for purchasing real estate.“The average 30-year fixed mortgage rate was little changed this week at 6.49%,” wrote Freddie Mac on June 25. “Rates have remained relatively stable over the last six weeks.”The daily 30-year fixed mortgage rate was 6.53% on June 26, according to Mortgage News Daily (MND). “There weren’t any dramatic developments behind the scenes in terms of economic data or news headlines (not that we’d expect them when rates hold perfectly flat),” wrote MND Chief Operating Officer Matthew Graham. Meanwhile, on June 25, real estate technology company Redfin reported other significant developments adversely affecting the housing market, including record-high home prices and a decrease in new listings.Redfin reports record-high home pricesConsistently high mortgage rates are only one reason for the decline in new listings.”Many would-be sellers are also buyers who are locked into a low rate,” Redfin explained. “Buyers are also jittery due to widespread economic uncertainty, stemming partly from inflation and the back-and-forth on Iran peace talks.”But mortgage rates are not the only factor contributing to high housing payments.”The median home-sale price is up 2.5% year over year to a record-high $408,814,” wrote Redfin data journalist Dana Anderson.”New listings of U.S. homes for sale fell 1.7% from a week earlier during the week ending June 21 to their lowest level since February,” Redfin reported. “The total number of homes for sale dipped 0.4% week over week, the biggest decline since the last week of April.”Potential home sellers are withdrawing from the market, largely driven by cooling buyer demand.”Pending home sales fell 0.1% week over week, a small dip but the third straight week of slight declines from their May peak, and mortgage-purchase applications fell for the second straight week,” wrote Redfin.Affordability crisis leads to stunning shiftThese recent developments appear to indicate that the broader home affordability crisis is showing few signs of letting up any time soon.The larger housing cost trend is prompting many younger Americans to reconsider whether homeownership will play any role in their financial lives, according to findings reported by researchers at the University of Chicago and Northwestern University.If the study proves to be correct, the implications signal a stunning generational shift.”Using a calibrated life-cycle model matched to U.S. data, we project that the cohort born in the 1990s will reach retirement with a homeownership rate roughly 9.6 percentage points lower than that of their parents’ generation,” wrote researchers Seung Hyeong Lee and Younggeun Yoo.The researchers report other concerning housing market trends.”The model also shows that as households’ perceived probability of attaining homeownership falls, they systematically shift their behavior: They consume more relative to their wealth, reduce work effort, and take on riskier investments,” according to the report.”We show empirically that renters with relatively low wealth exhibit the same patterns,” it continued. “These responses compound over the life cycle, producing substantially greater wealth dispersion between those who retain hope of homeownership and those who give up.”

High mortgage rates and increasing home prices are causing a generational shift in homeownership expectations.Shutterstock/TS

A monthly housing payment comparison (as mortgage rates vary)To put into context the high housing costs current homebuyers face, I ran some real-world calculations to demonstrate the dramatic difference in monthly payments across common home prices and standard down payments compared to early 2022.By isolating the principal and interest on a standard 30-year fixed-rate mortgage, we can clearly see how much more expensive it has become to finance the exact same home today at a 6.5% interest rate compared to the 3.2% rates available at the start of 2022.To keep these parameters clean and simple, each of the following three scenarios assumes a standard 20% cash down payment, leaving an 80% loan balance to be financed over 30 years. Taxes, homeowners’ insurance, and HOA fees are excluded since they vary wildly by zip code, but the raw numbers alone tell a staggering story.Scenario 1: The starter home ($300,000)Data parameters: Purchase price of $300,000 with a 20% down payment ($60,000). Total loan amount financed is $240,000.At 3.2% interest: The monthly principal and interest payment is $1,038.At 6.5% interest: The monthly payment jumps to $1,517.The difference: An extra $479 per month (a 46% increase) for the exact same house.Scenario 2: The national median home ($425,000)Data parameters: Purchase price of $425,000 with a 20% down payment ($85,000). Total loan amount financed is $340,000.At 3.2% interest: The monthly principal and interest payment is $1,471.At 6.5% interest: The monthly payment jumps to $2,149.The difference: An extra $678 per month, adding over $8,100 in extra housing costs annually.Scenario 3: The upscale suburb home ($650,000)Data parameters: Purchase price of $650,000 with a 20% down payment ($130,000). Total loan amount financed is $520,000.At 3.2% interest: The monthly principal and interest payment is $2,249.At 6.5% interest: The monthly payment jumps to $3,287.The difference: A massive $1,038 more per month. Essentially, today’s interest premium (the extra amount of money one must pay every month purely because the interest rate went up) on this home equals the entire monthly payment of the starter home in Scenario 1.Note: This piece of financial journalism is for educational purposes only and not for formal tax or investment advice.Related: Charles Schwab, Vanguard: A costly cash choice on 401(k)s, IRAs .

The fight between Walmart and Amazon is no longer just about who can deliver groceries faster or offer the lowest price on household essentials.That rivalry has moved into nearly every part of retail.The two companies compete for shoppers, marketplace sellers, delivery speed, memberships, supply-chain strength, and even international e-commerce reach.TheStreet covered that widening battle as Walmart has tried to use its stores as a delivery advantage and push deeper into areas where Amazon has long been strong.Now the fight is moving further into a business that customers may not think about when they place an order or walk through a store: advertising.This shift is pivotal because retail advertising has become one of the most important growth areas for large retailers.When a company such as Walmart sells ads, it is not just selling space on a website. It sells access to shoppers and the ability to measure whether those shoppers later buy a product.For Walmart, that creates a new way to make money beyond selling groceries and household essentials. For customers, it affects the ads they see online, in apps, and increasingly on streaming TV.Walmart buys Vibe.co to expand connected TV adsWalmart confirmed on June 23 that it has entered into an agreement to acquire Vibe.co, a self-serve connected TV advertising platform.While the companies did not officially disclose the terms of the transaction, the Wall Street Journal reported that it includes a $1.2 billion cash payout, citing people familiar with the situation.Vibe.co, a French technology firm, is designed to help small and mid-sized businesses and mid-market brands run connected TV ad campaigns more easily.More Walmart:Walmart makes major move to lure customers from Amazon Prime DayWalmart launches exclusive premium beef lineWalmart makes a move to challenge Lowe’s and Home Depot“Vibe.co has created a purpose-built platform that simplifies streaming TV advertising, and together, we can help more businesses connect with customers across streaming environments while measuring the impact of those campaigns through Walmart’s commerce capabilities,” said Ryan Mayward, GM and senior vice president, Walmart Connect U.S.In simple terms, it is the ad business around shows and videos people watch through smart TVs and streaming apps.That market can be difficult for smaller advertisers to enter. Buying TV ads has traditionally required bigger budgets, specialized planning, and more complicated measurement.Walmart wants to make that process easier through Walmart Connect, its commerce media business.The company said Vibe.co’s platform will help advertisers with campaign activation, transparency, and measurement between media spending and commerce outcomes.That last part is key.A brand does not just want to know whether someone saw an ad. It wants to know whether the ad helped lead to a sale.Walmart can offer advertisers something traditional TV sellers cannot always provide as directly: a connection to actual shopping behavior.

Walmart continues to expand services beyond the aisles.QualityHD/Shutterstock

Walmart Connect becomes a bigger part of Walmart’s growth storyThe acquisition comes as Walmart’s advertising business is becoming more important to its overall strategy. In its first-quarter fiscal 2027 earnings, Walmart said its global advertising business grew 37%. Walmart Connect in the U.S. grew 44%, excluding VIZIO.That kind of growth matters because Walmart’s core retail business is massive but lower-margin.Selling groceries keeps shoppers coming back, but grocery retail is expensive and competitive. Advertising can be a higher-margin business and gives Walmart another way to grow profit without depending only on selling more products in stores.That is why Walmart’s 2024 acquisition of VIZIO was such an important move.VIZIO strengthened Walmart’s position in connected TV through smart TVs and the SmartCast operating system. Now Vibe.co gives Walmart another tool, a platform that can make connected TV ads easier for more advertisers to buy and measure. Basically, VIZIO gives Walmart the actual TV screens inside millions of living rooms, while Vibe.co provides the easy-to-use software that lets everyday sellers buy ad space on them.Together, the moves suggest Walmart is trying to build a larger ad ecosystem around its stores, website, app, marketplace, and streaming TV reach.That could be especially useful for Walmart marketplace sellers, since a smaller brand that sells through Walmart may not have the budget or team to run a traditional TV campaign. But if Walmart can make connected TV advertising easier to launch and tie it back to sales, those sellers may have a new way to reach shoppers.Amazon is the advertising giant Walmart is chasingThe Amazon comparison is unavoidable.Amazon has already built one of the world’s biggest advertising businesses by connecting product search, marketplace sellers, streaming content, and customer purchase data.In the first quarter of 2026, Amazon’s advertising services revenue reached $17.24 billion, up 24% from the prior year.That gives Amazon a major lead, but Walmart has advantages of its own. It has a massive store base, a large grocery business, a growing marketplace, and a weekly relationship with millions of shoppers who buy food, household goods, apparel, electronics, and pharmacy items.That shopping behavior is valuable to advertisers because it gives them a clearer view of what customers actually buy.Walmart’s challenge is turning that data into a bigger advertising business without making the shopping experience feel too crowded or promotional.If Walmart can use advertising growth to support better prices, better digital tools, and a larger marketplace, the business could strengthen its consumer pitch.But if shoppers feel like every screen has become another ad aisle, which, to be honest, can be annoying as a shopper simply trying to add items to the cart, Walmart will have to be careful.Walmart’s Amazon rivalry moves into the living roomThe Vibe.co deal shows how broad the Walmart-Amazon rivalry has become.First, the fight was about online shopping. Then it expanded to delivery speed, groceries, and diversified revenue beyond retail. Now it is moving deeper into streaming TV and advertising.Large retailers no longer just sell products, but they also sell access to shoppers.Amazon proved how powerful that model can be. Walmart is now trying to show that its own combination of stores, shopping data, marketplace sellers, and connected TV assets can make it a stronger rival in the ad market.For shoppers, the move may show up gradually.They may see more targeted ads tied to products they already buy, more brands trying to reach them through streaming TV, and more small sellers using Walmart’s ad tools to compete for attention.For Walmart, the company wants to turn its retail reach into an advertising engine that can help it compete with Amazon beyond the checkout lane.Related: Amazon’s $8.3 billion Prime Day sends Wall Street a warning

The technology sector, for the most part, has avoided a wave of bankruptcy filings that other industries have faced, including retail, restaurants, and real estate companies.One significant technology bankruptcy this year was Pepper Pay LLC, a Miami, Fla.-based financial technology company that sold digital payment processing services to small businesses, which filed for Chapter 7 bankruptcy liquidation on March 31, according to Credit and Collection News.

Cybersecurity and cloud services firm TPx Communications seeks a sale of its assets in bankruptcy.Shutterstock

TPx Communications files bankruptcyAnd now the parent company of TPx Communications filed for Chapter 11 bankruptcy with a restructuring support agreement backed by its sponsor and secured lenders to recapitalize the debtor, eliminate significant debt, and seek a sale of its assets.The debtor filed for bankruptcy protection as its revenue growth and overall scale were insufficient to cover its funded debt obligations and to maintain the liquidity needed to fund working capital, capital expenditures, lease obligations, and ordinary expenses, according to court documents. U.S. TelePacific Corp. and 11 affiliates filed their petition in the U.S. Bankruptcy Court for the Southern District of Texas on June 28, listing $100 million to $500 million in assets and $1 billion to $10 billion in debt.Debtor seeks $175 million saleUnder the restructuring support agreement, the debtor will seek a stalking-horse bidder for the purchase of its assets for a proposed $175 million.TPx Communications will continue to operate in the ordinary course of business during its Chapter 11 case, delivering managed services to its customers day-to-day operations without interruption, according to a company statement.The Austin, Texas-based technology firm’s largest unsecured creditors include Uniti Leasing X LLC, owed over $4.8 million; Bay Area Rapid Transit District, owed over $861,000; GIP 7th Street LLC, owed over $551,000; The Irvine Company, owed over $472,000; ScanSource/BroadSoft, owed over $349,000; and the Cain Travel Group of Boulder Inc., owed over $335,000.TPx seeks over $73 million DIP loanTPx Communications’ sponsor and lenders have agreed to provide $73.6 million in debtor-in-possession financing to fund ongoing operations and the debtor’s Chapter 11 case, according to a company statement. The DIP will include $20 million in new money and a roll-up of $53.6 million in prepetition debt.The sponsor and lenders have also committed to providing exit financing for the reorganized company.”This agreement with our lenders marks a substantial step forward for TPx,” Chief Executive Officer Shaun Andrews said in a statement. “It gives us the flexibility to accelerate our strategy, increase investments that grow the business, and deliver exceptional managed services to our customers.”We’re energized by the opportunities this creates and the path ahead,” Andrews said.TPx Communications has moved away from legacy products and services that no longer align with its business goals, according to company comments about its future on its website.The debtor also said that it had identified legacy debt obligations that are also no longer aligned with its future goals, which it is addressing in the bankruptcy case.TPx provides managed services for cybersecurity, networks, and cloud communications that reduce risk and maximize the value of IT investments.TPx Communications bankruptcy case:TPx parent U.S. TelePacific Corp. files Chapter 11 bankruptcy on June 28, 2026. Assets: $100 million to $500 million.Liabilities: $1 billion to $10 billion in debt.Debtor-in-possession financing commitment: $73.6 million.Source: PetitionRelated: Award-winning brewery closes with no notice

Big banks are making money, and while these jobs are often considered stable, that does not automatically mean every banking job is safe.Financial firms have spent the past several years adjusting to higher interest rates, changing customer habits, rising technology spending, and pressure to run more efficiently.That creates a difficult reality for workers. A company can be profitable, expanding in some areas while still cutting jobs in specific offices, support teams, or customer service functions.That shift is now showing up at JPMorgan Chase’s massive campus in Plano, Texas, one of its largest hubs outside of New York.The banking giant is cutting 244 jobs as it ends a call-center work function tied to its Consumer & Community Banking operations. The company stated the decision is part of local realignment rather than a broader pullback from the region.The cuts are concentrated heavily in fraud-related roles, a notable detail at a time when banks are spending more on technology to detect scams, protect customers, and manage risk.JPMorgan cuts 244 Texas jobs JPMorgan Chase will lay off 244 workers at 8181 Communications Parkway, Building A, in Plano, Texas, according to a Worker Adjustment and Retraining Notification (WARN) notice filed with the Texas Workforce Commission, reviewed by TheStreet.The company said it is ceasing its CCB FCPS Inbound Call Center work function at the location.CCB refers to Consumer & Community Banking, the JPMorgan Chase business that includes consumer banking, credit cards, auto finance, home lending, business banking, and related customer operations.More Layoffs:Breakfast giant cuts more workers after plant shutdownDelivery giant closes facility, cuts 100s of workersUber cuts jobs while chasing major new marketsThe affected employees were notified of the cuts on June 23, and they will receive a 60-day notice period. The first terminations are expected to begin Aug. 21, 2026.The cuts amount to around 2% of the campus’s 12,500-person footprint.Affected employees will be eligible for JPMorgan Chase’s severance pay plan. The bank also said it will assist affected employees in finding other available positions within JPMorgan Chase, if eligible.Relocation assistance may be available for certain positions, and outplacement assistance and other severance-related benefits will also be provided to eligible employees.The affected employees are not represented by a union, and bumping rights do not exist, according to the WARN notice.

JPMorgan lays off 100s in Texas.Bloomberg / Getty Images

JPMorgan uses AI in growing fight against fraudThe layoffs are concentrated heavily in fraud-related positions.According to the attached impacted-position list, the largest affected group is Fraud Specialist I, with 111 employees. Another 93 Fraud Specialist II employees are also affected.Together, those two job titles account for 204 of the 244 planned cuts.Other affected roles include 12 Cross-Skill Specialist I employees, 11 Fraud Supervisors, 10 Fraud Specialist III employees, three Fraud Specialist IV employees, two Fraud Manager II employees, one Invest Servicing Sr Spec I employee, and one Fraud Manager III employee.That makes the filing more than a routine job-cut notice. It lands in one of the most sensitive parts of consumer banking: fraud prevention.Fraud and scams have become a larger problem for banks and customers as criminals use more sophisticated digital tools, fake messages, spoofed calls, and social engineering to trick people into moving money or giving up account access.And JPMorgan Chase has been publicly leaning into that issue.In May, the bank confirmed nearly $14 million in philanthropic investments to help protect Americans from fraud and scams. JPMorgan said the effort would support consumer awareness, real-time prevention, and the development of new tools for vulnerable Americans.The company also said it prevented more than $12 billion in fraud attempts and payment scams in 2024, pointing to its intelligence-driven defenses, real-time monitoring, and rapid incident response.On JPMorgan’s first-quarter earnings call, CEO Jamie Dimon said the bank uses AI to reduce risk, fraud, and scams, while also using data to improve services and create new business opportunities in its consumer business.Dimon also warned in his annual shareholder letter that risks tied to the misuse of customer data and commerce are likely to get worse with AI and agentic commerce. He said JPMorgan is improving its capabilities to fight scams and fraud and expects to roll out products over the next two years focused on data control, safe commerce, and customer-friendly algorithms.The bank did not connect those AI efforts to the Plano layoffs. The filing only says the bank is ceasing the CCB FCPS Inbound Call Center work function at the Plano site.Still, the overlap is notable. Most of the affected jobs are fraud-related, and JPMorgan is publicly stating that fraud prevention is an area in which technology, AI, and real-time tools are becoming increasingly important.JPMorgan layoffs come as bank reports strong profitThe latest cuts also do not reflect any weak financial period for JPMorgan Chase.The bank reported Q1 2026 net income of $16.5 billion, up 13% from the same period a year earlier. Its managed revenue rose 10% to $50.5 billion.Its Consumer & Community Banking business also posted growth.Net revenue in the segment rose 7% year over year to $19.6 billion, while net income rose 12% to $5 billion.But expenses also increased.JPMorgan Chase said firmwide noninterest expense rose 14% in the first quarter to $26.9 billion, driven largely by higher compensation, revenue-related compensation, growth in front-office employees, brokerage expenses, distribution fees, marketing expenses, and auto lease depreciation.In Consumer & Community Banking, noninterest expense rose 11% to $11 billion. The bank said the increase was largely driven by higher marketing expenses, higher auto-lease depreciation, and higher compensation for bankers and advisors.That mix helps explain why large companies can keep growing while still trimming specific operations.JPMorgan Chase remains one of the largest employers in the financial industry. But the bank, like other major companies, is still adjusting its workforce by business line, function, and location.TheStreet recently reported that JPMorgan CEO Jamie Dimon has continued to press employees, especially younger workers, to return to in-office work as the bank pushes for more in-person collaboration.TheStreet has also reported that major employers are cutting jobs while investing in new technologies, automation, and artificial intelligence. Those cuts often do not signal a companywide collapse. Instead, they show how companies are reallocating money, staff, and resources toward areas they believe will drive future growth.The Plano layoffs fit into that broader labor-market shift.Related: Amazon’s $8.3 billion Prime Day sends Wall Street a warning

Contrarian investors make their reputations by being right when everyone else is wrong. The harder trick is knowing when their own bearishness has run its course. The best of them can flip without flinching.Few investors carry a heavier bearish reputation than Michael Burry. The Scion Asset Management founder is the man who shorted the housing market before the 2008 crash, the role Christian Bale played in “The Big Short.” For most of 2026, he has aimed that skepticism squarely at artificial intelligence, stacking put options against Nvidia (NVDA) and a basket of semiconductor and Nasdaq funds while comparing today’s AI mania to the dot-com peak. He has called the leaders of the AI boom overhyped and overfunded, and he has put real money behind the warning.So it counts as news when the most-watched bear on Wall Street quietly does the opposite. On June 25 Burry disclosed a long, multi-year bullish bet on Microsoft (MSFT), buying December 2028 call options on a stock he says the market has unfairly thrown away.What Michael Burry actually bought in MicrosoftThe position is unusual in its construction. Burry did not simply buy the stock.He bought December 2028 long-term equity anticipation securities, or LEAP call options, with a strike price in the low $700s, according to Stocktwits. A LEAP is simply a call option dated years out rather than months. By using options instead of buying shares outright, Burry risks a smaller, defined sum for a far bigger payoff if Microsoft climbs, the kind of asymmetric setup he has favored for years.More Tech Stocks:Wedbush spots clear investor opportunities in tech stocksMorgan Stanley resets Micron stock price target on strong Al demandWhy a fatal crash threatens Tesla’s stockHis reasoning was blunt. The “$350 level for Microsoft is a good place to buy,” Burry wrote, calling the longer-dated options cheap next to his outlook, according to TipRanks.Here is what struck me when I ran the math. Microsoft closed at $365.46 on June 24 and touched a 52-week low of $349.20 the next day. For low-$700s calls to pay off, the stock has to nearly double by December 2028 and clear its October 2025 record close of $538.66 by a wide margin.That is not a bounce bet. It is a wager that Microsoft prints an all-time high it has never seen, and does it inside about two and a half years.This is not even Burry’s first move on the stock. He first went long Microsoft in April, when shares were also getting hammered, as TheStreet reported. The June trade escalates that position into a multi-year options structure with far more upside if he is right.He did more than one thing that day. Burry covered half of his Palantir (PLTR) short at $107.15 while keeping his put options, added to JD.com (JD) and Adobe (ADBE), and sold his Alibaba (BABA) stake for tax-loss reasons, Stocktwits reported.

Wall Street’s most famous bear just turned bullish on tech.Bloomberg / Getty Images

Microsoft’s AI spending spooked the market in 2026Microsoft did not fall because the business broke. It fell because the bill came due.The company is on track to spend roughly $190 billion on capital projects this fiscal year, much of it poured into AI data centers and the memory chips that feed them. A global memory shortage has made that hardware far more expensive.Investors did the math and balked. Microsoft has shed more than $1 trillion in market value since its October 2025 peak, sliding from a record $538.66 close to roughly $365 and a market cap near $2.6 trillion.Related: Michael Burry makes a bold call on the SpaceX tradeTo put that in human terms, in eight months, Microsoft erased more wealth than the entire market value of all but a handful of companies on the planet, the kind of money that does not just vanish from a chart. It vanishes from 401(k)s, index funds, and the retirement math of millions of people who never intentionally bought a single share.Most of them own Microsoft anyway, because it sits near the top of the S&P 500 and nearly every target-date fund in America.The drop was also part of a broader retreat from the most crowded AI trades, as a volatile 2026 market pushed investors out of anything tied to expensive computing power. That is the rotation Burry has been trading against all year.Here is the scorecard on those bets, and it is mixed:Lululemon (LULU): His long position remains underwater, with Finbold reporting the bet down about 45%.Nvidia (NVDA): His bearish short has swung back and forth for weeks without a clear winner, Finbold noted.Palantir (PLTR): His short has worked, with the stock down more than 33% in 2026, according to Finbold.Microsoft (MSFT): The new long, expressed through December 2028 call options, Stocktwits confirmed.What the Microsoft bet means for your moneyThe easy read is that Burry flip-flopped. The accurate read is sharper.When I went back through his 2026 disclosures, the pattern held. Every long he has put on this year is a beaten-down name the crowd abandoned, and every short is a crowded favorite priced for perfection.Burry is not calling the all-clear on AI. He framed this year’s software selloff as “technical pressure, not fundamental,” according to Stocktwits, meaning forced selling rather than broken businesses.His Microsoft bet and his still-live Nvidia and Palantir shorts are the same idea wearing two outfits. Buy what fear oversold. Sell what greed overbought.That distinction matters for your portfolio more than any single ticker. It reframes the question from whether AI is a bubble to which AI-exposed companies got thrown out with the bathwater.Wall Street, for its part, largely agrees with the bullish side of that trade on Microsoft. The stock carries a strong buy consensus and an average price target of $562.10, roughly 51% above recent levels, according to TipRanks. Stifel’s Brad Reback is the rare holdout, with a hold rating and a trimmed $400 target.Shares have already started to answer. Microsoft opened 4.09% higher on June 26, the day after Burry’s disclosure surfaced, clawing back much of its recent slide, according to Finbold.Burry has been early before, and early can look wrong for a long time. His Nvidia and Palantir shorts could still burn him, and a 2028 expiration gives Microsoft plenty of room to disappoint first.But the trade tells you how the sharpest bear in the market reads this moment. He is betting that the panic swept up at least one company that did not deserve it, and he is willing to wait until 2028 to be proven right.For anyone who watched Microsoft drop and wondered whether the fear went too far, that is a data point worth sitting with. When the man who shorted the housing market starts buying Big Tech, the contrarian trade might no longer be his claim to fame.Related: Morgan Stanley resets Microsoft stock price target

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.Why we love this dealA stable source of power isn’t just convenient, it’s reassuring and sometimes necessary. Whether you’re on a long road trip and need to charge your devices, or you’re preparing for a seasonal storm that could cut off your home’s electricity, the right portable power solution can be essential. It completely changes how you plan for an emergency, and lets you rest well knowing that you have a backup plan in case of an emergency. It can keep your food from going bad in the fridge, allow you to keep a charged device on you at all times, and bridge the gap from being comfortable to being prepared without being stressed. Jackery has been a big name in power since 2012, and the Jackery Explorer 1000 V2 Portable Power Station is a great example of why. It’s made for everyday utility or occasional emergencies. It can be charged via a solar panel (not included) or by plugging it into your nearest outlet. It charges in as little as one hour when on the emergency supercharge setting, and it’s small enough to easily store in the trunk of your car or in the closet. Right now, it’s on sale for 50% off.Jackery Explorer 1000 V2 Portable Power Station, $400 (was $799) at Amazon

Courtesy of Amazon

Shop at AmazonWhy do shoppers love it?This power station has a 1,500-watt output that can handle a range of devices, from cell phones and tablets to smaller appliances and power tools. It has a solid power capacity with a light 23.8-pound footprint. The foldable handle makes it easier to transport, and the size offers ease of use anywhere it’s needed. The quick charge is available, but the longer 1.7-hour charge offers a full battery life while also helping preserve long-term battery health, which can exceed a 10-year lifespan, and keeps over 70% of its original charge power even after 4,000 charges. Related: DIY emergency kits can save your life in a stressful situationThis power station features multiple ports, including two USB-C ports, one USB-A port, one direct current car port, and three AC ports, along with LED lights. This Jackery is capable of charging multiple devices at one time, and the 100-watt USB-C charging offers a rapid charging speed without power adapters. You can download the Jackery power app to switch between modes, including one-hour emergency charging, 30-decibel quiet overnight charging mode, and energy efficiency mode. Details to knowSizes: This power station weighs almost 24 pounds and has a carrying handle for easy access. Charging features: This 1500-watt power station can charge multiple devices at once, and has a quick 1-hour charging option to charge the power station. Charging Ports: It features multiple ports, including two USB-C ports, one USB-A port, one DC car port, and three AC ports, along with LED lights. Over 2,000 of these portable power stations have been sold in the past month! One reviewer said, “We are able to use it to run our camper during the fall time. It is well made and the battery lasts. It has even been used at our house when we have lost power for short periods of time. It is easy to carry around, lightweight, and easy to use. I highly recommend it.” Another person said, “It delivers plenty of power for electronics, small appliances, and tools, with stable pure sine wave output. The charging is impressively fast, and the build quality feels solid.”Shop more dealsAnker Solix Portable Power Station, $379 (was $500) at AmazonGrecell Solar Generator Portable Power Station, $285 (was $700) at AmazonWhether you want to be prepared for your next camping trip or need something for home emergencies, the Jackery Explorer 1000 V2 Portable Power Station is a trustworthy option. It’s lightweight, easy to carry, and can last over 10 years. It has quick-charge options and battery-saving options available through the Jackery app, and it can charge multiple devices at once. Shoppers can get all of this for just $400.