On Wednesday evening Eastern Time, Michael Burry, the real-life inspiration for the film "The Big Short" and famous for accurately predicting the 2008 subprime mortgage crisis, warned about artificial intelligence. The actual demand is far lower than what is currently being presented, and he also accused major tech giants of making false statements about their revenue.
It's worth noting that just hours before he made his remarks, Nvidia, the leading AI stock in the US market,... The company just released strong earnings, which not only boosted its own stock price in after-hours trading but also fueled optimism among global tech stock investors.
"Big Short" criticizes tech giants' revenue as questionable?
On Wednesday, Eastern Time, Burry posted a chart on social media that outlines companies including Microsoft. Company, OpenAI, Oracle He criticized the company's AI investment agreements with several large technology companies, including Nvidia , while also accusing these companies of "questionable revenue recognition practices."
“In the future, people will see this as a fraudulent scheme. The actual demand is extremely small, and almost all customers are funded by their dealers ,” Burry said.
In a subsequent post, he accused OpenAI of being "key" and also questioned the AI startup's auditing firm.
He also accused large tech companies of underestimating the depreciation of their AI capital expenditures, while refuting the argument that older AI chips should have longer depreciation periods simply because they are still in use.
The "big short" still insists on a bearish outlook.
After years of fading from the public eye, Burry returned to the spotlight this November. He has recently issued multiple warnings that there is a bubble in US tech stock valuations driven by artificial intelligence. He disclosed short positions in Nvidia and Palantir, while also criticizing major AI spenders for their data centers. The depreciation of the assets was misrepresented.
Burry's views are clearly very different from those of Nvidia CEO Jensen Huang—just during Nvidia's earnings call, Huang directly refuted the "AI bubble theory" and stated that the market demand for the company's products extends far beyond large-scale AI enterprises.
It's worth noting that just a few days ago, Burry suddenly announced the "liquidation" of his fund, Scion Asset Management, which he managed, had been delisted from the U.S. Securities and Exchange Commission. The Securities and Exchange Commission (SEC) revoked the registration. There is speculation that Burry may be planning to convert Scion into a family office, a type of advisory firm that does not require SEC registration.
In his letter at the time, Burry stated, "My judgment of the value of securities is not consistent with market conditions, and this situation has been ongoing for some time."
(Article source: CLS)
