Michael Burry Brands Nvidia (NVDA) $500B AI Financing Plan a ‘Wall Street Stunt’

In a post on X, Burry characterized the arrangement as a “Wall Street stunt,” establishing parallels to the intricate financial instruments that precipitated the 2008 economic meltdown. The chipmaker recently executed memorandums of understanding with six prominent asset management firms: Apollo Global Management, BlackRock, Blackstone, Brookfield Asset Management, Goldman Sachs, and KKR. NVIDIA Corporation, NVDABurry outlined what he perceives as a circular and excessively leveraged financing chain underpinning these agreements. The BIS highlighted that generative AI market disruption could damage revenues at these software borrowers, introducing inadequately priced risk throughout private credit sectors. Burry has recently expanded his short position against Nvidia using put options, demonstrating he’s backing his skeptical outlook with capital.