"It's a battle worth watching because Burry might actually win it. What makes this different from every other warning about an AI bubble is that Burry now has the audience and the freedom from regulatory constraints to potentially become the catalyst for the very collapse he's predicting. He's betting against the AI boom, but he's also proactively trying to convince his growing number of followers that the emperor - Nvidia - has no clothes."
"Burry has really thrown himself into the effort in recent weeks. He's been slinging mud at Nvidia; he also traded nasty comments with Palantir CEO Alex Karp after regulatory filings revealed Burry held bearish put options on both companies - a bet worth over $1 billion that they'd crash. (Karp went on CNBC and called Burry's strategy " batshit crazy," to which Burry responded by mocking Karp for not understanding how to read an SEC filing.)"
"Burry's allegations are specific and damning. He says Nvidia's stock-based compensation has cost shareholders $112.5 billion, essentially "reducing owner's earnings by 50%." He has suggested that AI companies are cooking their books by slow-walking depreciation on equipment that's losing value fast. (Burry believes that Nvidia customers are overstating the useful lives of Nvidia's GPUs in order to justify runaway capital expenditures.)"
Michael Burry has openly positioned himself against Nvidia, building a public campaign that could influence market sentiment. He holds bearish put options on Nvidia and Palantir worth over $1 billion combined. He publicly attacked Nvidia's stock-based compensation, claiming it has cost shareholders $112.5 billion and reduced owners' earnings by 50%. He accused AI companies of under-depreciating fast-obsolescing equipment, alleging customers overstate GPU useful lives to justify capital spending. Burry engaged in public spats with executives, including Palantir CEO Alex Karp. The confrontation frames a wider market debate over whether AI gains justify lofty valuations or signal speculative mania.
Read at TechCrunch
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