Michael Burry Calls Nvidia's $500 Billion AI Financing a Wall Street Stunt
Updated
Updated · Benzinga · Aug 12
Michael Burry Calls Nvidia's $500 Billion AI Financing a Wall Street Stunt
3 articles · Updated · Benzinga · Aug 12
Summary
Burry targeted Nvidia’s $500 billion AI financing push, arguing the structure relies on Nvidia taking 25% stakes and offering residual-value guarantees on chip purchases.
He said the arrangement is being funneled through private equity and private credit, warning it resembles old financial engineering rather than a genuinely new funding model.
Ed Yardeni echoed the caution, calling Wall Street’s reaction to the non-binding agreements “kind of ho hum” and saying investors should be selective as capital markets sort winners from losers.
A BIS report added a broader risk warning: Business Development Companies have lent $115 billion to software firms, with more than 80% of their tech portfolios exposed as generative AI threatens borrowers’ revenues.
Nvidia shares still show strong momentum despite the criticism, up 16.62% in 2026 and last closing at $217.50 before a 1.17% premarket rise Wednesday.