Nvidia Fires Back as Burry Accuses AI Industry of Overbuild & Accounting Games

[mendez]

Burry claims Nvidia has burned $112.5B in shareholder value through stock-based compensation and says AI companies are overstating GPU lifespans to justify runaway spending. Nvidia responded with a seven-page memo, arguing Burry’s math is wrong and its comp is “consistent with peers.” Burry insists he’s not calling Nvidia the next Enron—but the next Cisco of the 1990s, warning of infrastructure overbuild that ends in a 75% crash.

[Nahid Hossen]

Strong pushback from Nvidia shows how seriously they take these criticisms.

[Rimon Khan]

Accusations like these can shake investor confidence regardless of accuracy.