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Nvidia’s AI push has echoes of Enron, says Big Short investor
['Chris Price', 'Wed', 'August At Pm Bst', 'Min Read']
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Michael Burry predicted the housing market crash before the 2008 financial crisis - Jim Spellman/WireImageThe US investor depicted in the film The Big Short has criticised Nvidia's new $500bn (£370bn) AI funding deal, claiming it has "shades of Enron".
The US investor also added to his short positions, bets that a company's share price will fall, against a series of major AI companies.
He claimed Nvidia's giant funding announcement – backed by Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR – was a public relations stunt.
Mr Burry said Nvidia's latest deals had "shades of Enron's effort to make wholesale power an investable class".
"The demand is real: it comes from frontier AI labs, AI-native startups, enterprises, cloud providers and countries building AI services."