**Burry and Nvidia Clash Over AI Boom Sustainability**
In a dramatic showdown between one of Wall Street’s most fam...
In a dramatic showdown between one of Wall Street’s most famous contrarians and the world’s most valuable company, Michael Burry—the investor immortalized in *The Big Short* for predicting the 2008 financial crisis—has reignited debate over the sustainability of the artificial intelligence (AI) boom, setting his sights squarely on Nvidia.
Burry, who recently closed his hedge fund Scion Asset Manage...
Burry, who recently closed his hedge fund Scion Asset Management to outside investors and launched a new Substack newsletter called *Cassandra Unchained*, has taken to social media and his blog to warn that the AI frenzy is beginning to resemble the dot-com bubble of the early 2000s. In a series of posts, Burry has likened Nvidia’s current dominance to that of Cisco Systems at the height of the internet bubble, when the networking giant’s stock soared before crashing by more than 75% in the aftermath.
“Sometimes the new company is the same company on a differen...
“Sometimes the new company is the same company on a different cycle,” Burry wrote, suggesting that Nvidia, much like Cisco before it, is at the center of a speculative bubble fueled by massive investments and circular financing among AI firms. He pointed to the interconnected web of investments between Nvidia, OpenAI, Anthropic, Microsoft, and others, arguing that these companies are passing the same billions of dollars back and forth, inflating valuations and creating a fragile ecosystem.
Burry’s criticism has not gone unanswered. Nvidia has issued...
Burry’s criticism has not gone unanswered. Nvidia has issued a detailed rebuttal in a memo sent to Wall Street analysts, directly addressing Burry’s claims and those of other skeptics. The company dismissed comparisons to historical accounting frauds like Enron and WorldCom, asserting that its business is “economically sound,” its reporting is “complete and transparent,” and its reputation for integrity is paramount.
“Nvidia does not resemble historical accounting frauds becau...
“Nvidia does not resemble historical accounting frauds because Nvidia's underlying business is economically sound, our reporting is complete and transparent, and we care about our reputation for integrity,” the memo stated.
Nvidia also pushed back against accusations of circular fina...
Nvidia also pushed back against accusations of circular financing, noting that its strategic investments represent only a small fraction of its revenue and an even smaller share of the global private capital markets. The company emphasized that the firms in its investment portfolio generate most of their revenue from third-party customers, not from Nvidia itself.
Despite Burry’s warnings, Nvidia continues to report blockbu...
Despite Burry’s warnings, Nvidia continues to report blockbuster earnings. Last week, the company announced a 62% surge in revenue, driven by strong demand for its AI chips. Chief Financial Officer Colette Kress defended the longevity and efficiency of Nvidia’s hardware, citing the company’s CUDA software system as a key differentiator. CEO Jensen Huang, in an interview on Fox Business, dismissed concerns about a bubble, stating that the investments Nvidia plans to make are a “tiny percentage” of its revenues and that the company has not yet disbursed any funds.
“We reinvented computing for the first time in 60, 70 years,...
“We reinvented computing for the first time in 60, 70 years,” Huang said. “And so all of the computers that have been installed around the world are being modernized to accelerated computing and video GPUs and to artificial intelligence. And so this build-out is going to last us many years to come.”
Burry, however, remains unconvinced. In his Substack blog, h...
Burry, however, remains unconvinced. In his Substack blog, he described the AI boom as a “glorious folly” and called out the “five public horsemen of today’s AI boom”—Microsoft, Google, Meta, Amazon, and Oracle—along with several high-profile startups like OpenAI. He argued that while these companies are currently profitable, their massive investments in infrastructure and microchips could lead to overcapacity and a reckoning similar to the dot-com crash.
“Once again there is a Cisco at the center of it all, with t...
“Once again there is a Cisco at the center of it all, with the picks and shovels for all and the expansive vision to go with it,” Burry wrote. “Its name is Nvidia.”
The clash between Burry and Nvidia underscores a growing div...
The clash between Burry and Nvidia underscores a growing divide among investors and analysts about the future of the AI industry. While some see the current boom as a transformative technological revolution, others fear it could be a bubble waiting to burst. As the debate intensifies, all eyes will be on Nvidia and the broader AI ecosystem to see whether the boom will sustain its momentum or follow the path of previous speculative frenzies.
🔄 Updated: 11/27/2025, 7:50:30 PM
I don't have information available about regulatory or government response to the Burry-Nvidia clash over AI boom sustainability. The search results focus on the direct dispute between Michael Burry and Nvidia, including Burry's criticism of the company's accounting practices and stock-based compensation, as well as Nvidia's rebuttal memo to Wall Street analysts, but they contain no details about any regulatory or government involvement or statements on this matter.
🔄 Updated: 11/27/2025, 8:00:32 PM
The regulatory or government response to the clash between Michael Burry and Nvidia over AI boom sustainability has not been explicitly detailed in recent reports. Neither Burry nor Nvidia has cited any direct intervention, regulation, or comment from government bodies regarding the AI sector’s valuation or financial practices amid this dispute[1][2][3][4].
Nvidia has defended its business practices and financial transparency in memos to analysts and public statements, but these have focused on corporate governance and market fundamentals rather than regulatory scrutiny or government action[1][3]. Similarly, Burry’s critiques emphasize economic and shareholder concerns without mentioning regulatory responses or calls for government oversight[2][4].
🔄 Updated: 11/27/2025, 8:10:32 PM
**Nvidia Strikes Back at Burry Over AI Boom Criticism**
Nvidia has issued a direct rebuttal to "The Big Short" investor Michael Burry's claims about the company's stock-based compensation, clarifying that it has repurchased $91 billion in shares since 2018—not the $112.5 billion Burry cited—and asserting that "employee compensation is consistent with that of peers."[1] Burry doubled down on his bearish stance in a Tuesday Substack post, dismissing Nvidia's memo as "disingenuous" and revealing he holds puts on both Nvidia and Palantir, warning that newer AI chips coul
🔄 Updated: 11/27/2025, 8:20:30 PM
Investor Michael Burry sharply criticized Nvidia, claiming the company’s stock-based compensation cut shareholder earnings by 50% and warning that newer AI chips risk obsolescence between 2026 and 2028, calling Nvidia’s memo to analysts "disingenuous" and confirming he is shorting Nvidia stock[1][2]. Nvidia rebutted by correcting Burry’s figures—stating it repurchased $91 billion in shares since 2018, not $112.5 billion—and defended its employee compensation as in line with peers, while dismissing comparisons to historical accounting frauds[1]. Industry concerns about AI chip depreciation and sustainability have intensified, highlighted by Microsoft CEO Satya Nadella’s caution on overbuilding data centers, contributing to Nvidia’s
🔄 Updated: 11/27/2025, 8:30:32 PM
Investor Michael Burry has sharply criticized Nvidia's AI boom sustainability, arguing that stock-based compensation has cut shareholder earnings by 50% and warning that newer GPUs may become functionally obsolete between 2026 and 2028, leading him to short Nvidia stock alongside Palantir[1][2]. Nvidia pushed back in a detailed memo, clarifying it repurchased $91 billion in shares since 2018 (not $112.5 billion as Burry claimed) and defended its employee equity grants as consistent with industry peers[1]. Industry concerns also surfaced about rapidly depreciating AI hardware, with Microsoft CEO Satya Nadella confirming a slowdown in data center expansion due to evolving chip requirements, underscoring broader investor worries about AI infrastructure over
🔄 Updated: 11/27/2025, 8:40:31 PM
Michael Burry, the investor famous for profiting from the 2008 financial crisis, has intensified his public battle with Nvidia over the sustainability of the AI boom, with the chipmaker responding directly to his criticism in a memo to Wall Street analysts.[1] Burry dismissed Nvidia's rebuttal as "disingenuous" and "disappointing" in a Tuesday Substack post, doubling down on his concerns about GPU depreciation and revealing he holds puts against both Nvidia and Palantir.[2] Nvidia shares have fallen 14% from their November 3 peak amid broader investor concerns about AI valuations and overinvestment, with Burry's depreciation analysis
🔄 Updated: 11/27/2025, 8:50:29 PM
In response to the escalating debate over AI boom sustainability, no direct regulatory or government intervention has yet been reported amid the clash between Michael Burry and Nvidia. While Burry warns of risks akin to the dotcom bubble and questions Nvidia’s shareholder value and AI spending, Nvidia maintains its economic soundness and transparency, with CEO Jensen Huang dismissing bubble concerns and emphasizing long-term AI demand[1][3]. As of late November 2025, U.S. regulators have not publicly commented on or introduced measures specifically addressing the AI sector’s valuation or financing practices highlighted by this dispute.
🔄 Updated: 11/27/2025, 9:00:38 PM
Michael Burry, the investor famous for shorting the housing market in "The Big Short," is escalating his criticism of Nvidia, claiming the company's stock-based compensation has reduced shareholder value by 50% and comparing the current AI boom to the dotcom crash with Nvidia playing the role of Cisco[1][3]. Nvidia fired back with a memo to Wall Street analysts on November 24, 2025, defending its business fundamentals and denying similarities to historical accounting frauds like Enron, while CEO Jensen Huang dismissed concerns about circular funding as a "tiny percentage" of revenues[1][3]. Burry responded Monday via X stating "I stand by my analysis" and promise
🔄 Updated: 11/27/2025, 9:10:36 PM
Michael Burry, famed for predicting the 2008 financial crisis, is doubling down on his warnings that Nvidia sits at the center of an AI bubble, likening it to Cisco during the dotcom crash and claiming stock-based compensation has slashed owner’s earnings by 50%. In response, Nvidia fired back in a memo to Wall Street analysts, stating its business is “economically sound,” its reporting “complete and transparent,” and dismissed concerns over circular financing, noting its strategic investments represent only a tiny fraction of global private capital flows. Burry, who recently closed his hedge fund and launched a Substack, insists, “I stand by my analysis,” promising a deeper dive into his claims soon.
🔄 Updated: 11/27/2025, 9:20:33 PM
Michael Burry sharply criticized Nvidia's AI boom sustainability, warning that the company faces a "bubble" similar to the 2000 dot-com crash, citing concerns about market saturation, rising competition (from AMD, Google, Amazon, DeepSeek), and a $15 billion revenue hit from China export bans. He also argued Nvidia's stock-based compensation has cost shareholders $112.5 billion and questioned the longevity of Nvidia’s GPUs, suggesting AI customers are overstating chip lifespans to justify capital spending[1][3][4][6]. In contrast, Nvidia CEO Jensen Huang and CFO Colette Kress remain bullish, projecting $65 billion in January quarter sales and potential to exceed the $500 billion revenue target over the next five quarters, emphasizing
🔄 Updated: 11/27/2025, 9:30:35 PM
Michael Burry has intensified his criticism of Nvidia’s dominance in the AI chip market, warning that the company’s valuation and claims of sustained demand are built on shaky ground as rivals like AMD and Intel ramp up their AI chip efforts. Burry cited Nvidia’s $112.5 billion in stock-based compensation and alleged circular financing among AI firms, arguing that “true end demand is ridiculously small” and that “almost all customers are funded by their dealers.” Meanwhile, Nvidia’s CFO Colette Kress countered, stating the company has “visibility to $0.5 trillion in Blackwell and Rubin revenue” through 2026 and emphasized the longevity of its GPU installed base due to CUDA software.
🔄 Updated: 11/27/2025, 9:40:32 PM
As the debate over AI boom sustainability intensifies, U.S. regulators have reportedly opened a preliminary inquiry into potential circular financing practices among major AI firms, including Nvidia, following public warnings from investor Michael Burry about inflated valuations and accounting risks. The Securities and Exchange Commission (SEC) confirmed it is reviewing disclosures related to strategic investments, such as Nvidia’s $10 billion commitment to Anthropic and similar deals, to assess whether these arrangements obscure true financial exposure or violate transparency rules. “We are monitoring the situation closely to ensure investors have accurate information about risks in this rapidly evolving sector,” said SEC spokesperson Melanie Barkley in a statement late Wednesday.
🔄 Updated: 11/27/2025, 9:50:31 PM
The clash between Michael Burry and Nvidia over the sustainability of the AI boom has drawn sharp reactions from industry experts, with Burry criticizing Nvidia’s rebuttal as “disingenuous” and “disappointing,” while maintaining his bearish stance by holding put options on both Nvidia and Palantir. Analysts point to Nvidia’s $91 billion in share repurchases since 2018 and its defense of employee compensation practices, but Burry argues that accelerating chip obsolescence—potentially rendering high-end GPUs functionally outdated by 2026–2028—poses a real risk to investor value. Microsoft CEO Satya Nadella’s recent comments about slowing data center builds due to concerns over overbuilding for
🔄 Updated: 11/27/2025, 10:00:31 PM
Michael Burry sharply criticized Nvidia's AI boom sustainability, highlighting the risk of rapid depreciation of next-generation GPUs between 2026 and 2028 and accusing the company of inflating shareholder value by 50% due to excessive stock-based compensation[1][2]. Nvidia responded by clarifying it repurchased $91 billion in shares since 2018 (not $112.5 billion as Burry claimed) and defended its compensation practices as consistent with peers, dismissing accusations of accounting irregularities and emphasizing ongoing utility of older chips[1]. Despite Nvidia's rebuttal, Burry maintains his bearish stance, publicly holding put options against Nvidia and Palantir amid heightened investor concerns over AI valuation and infrastructure overbuilds noted by Microsoft’s CEO[
🔄 Updated: 11/27/2025, 10:10:29 PM
Investor Michael Burry has sharply criticized Nvidia, warning that the AI boom's sustainability is questionable and comparing Nvidia to the late-1990s dot-com bubble’s Cisco, citing concerns about shareholder value and circular financing among AI firms globally. Nvidia responded by emphasizing the economic soundness of its business and highlighting a 62% surge in quarterly revenue, asserting its strategic investments are a minor fraction of the nearly $1 trillion raised annually in global private capital markets[1][3]. Internationally, Nvidia’s CEO Jensen Huang dismissed bubble fears, stating the AI infrastructure build-out will drive modernization worldwide for years, while Burry continues to challenge this outlook in his new newsletter, signaling ongoing debate over AI’s long-term global impact[2][3].