America's biggest investor questions Nvidia's $250bn OpenAI investment plans
Investor Michael Burry has criticized the massive financial backing provided by Nvidia for OpenAI's data-center projects, citing risks of circular funding and unsustainable debt. The project, which involves significant government and international investment, is intended to support future AI infrastructure.
Why it matters
Concerns over the financial sustainability of AI megadeals highlight potential systemic risks in the current tech investment bubble.
America’s biggest investor, Michael Burry has voiced his sharp criticism of reports that Nvidia is preparing a a $250 billion backstop for OpenAI’s massive Ohio data-center project. According to a report by the Wall Street journal, the guarantees would help OpenAI lease a 10-gigawatt site being developed by SoftBank’s SB Energy, with total costs potentially exceeding $500 billion. Burry’s complaint echoes what analysts have long warned about in AI megadeals: circular funding arrangements that expose investors to enormous risk if sentiment shifts or growth slows. Nvidia, already valued at $5 trillion, has invested $30 billion in OpenAI and is now considering financing chip purchases worth another $350 billion.
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