The stock market doesn't operate on long-term principles anymore. So, in some sense, it is immaterial that the rosy scenarios where AI is responsible for >$30 trillion in the next decade are unlikely. If you bet against the hype and it goes on for a few more months/years you lose as much or more than if you went along for the ride.
Burry is well aware of this, he has written about how passive investing is contributing to this problem.
Burry is well aware of this, he has written about how passive investing is contributing to this problem.