"Burry shot to fame after his massive bet against the US housing bubble was immortalized in the book "The Big Short," and a movie adaptation starring actor Christian Bale as Burry. He resurfaced on X in late October after more than two years of silence. Since then, he has sounded the alarm on an AI bubble, closed his hedge fund to outside cash, launched a Substack to share his research, and disclosed he owns bearish put options on Nvidia and another AI darling, Palantir."
"Jensen explained there's a "resource grab" in AI as companies compete for scarce land, energy, microchips, and scientists, and tech bosses are hoping AI itself can help. "One of the things they have to do is figure out how to make the chips more efficient, make the energy more efficient, and they're trying to use AI to do those things," he said."
Michael Burry warned that major AI companies are overstating how long Nvidia chips will remain useful to inflate short-term profits. Greg Jensen of Bridgewater warned that the depreciation schedule for these chips will likely be rapid as AI-driven advances make current hardware obsolete. Companies are engaged in a resource grab for land, energy, microchips, and scientists. Firms are using AI to improve chip and energy efficiency, and some scientific breakthroughs that shorten asset life may originate from the chips themselves. Burry has taken bearish positions and criticized extended depreciation schedules.
Read at Business Insider
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