24/7 Wall Street
01 Jun 2026, 15:45 UTC · 1h ago
Michael Burry Just Called Nvidia's SpaceX Chip Deal ‘Fugazi.' Here's Why It All Seems Wrong
24/7 Wall Street
01 Jun 2026, 15:45 UTC · 1h ago
Story key points
5 claims · impact-rated
Athene has shifted $217 billion in assets to a Bermuda captive insurer with 16x leverage and 34.7% in illiquid Level 3 assets. — High leverage and lack of transparent pricing in a massive offshore pool create systemic risk for retail annuity holders and Apollo's affiliate.
-0.80Nvidia recognized $5.4 billion in immediate revenue from a GB200 GPU sale to a Special Purpose Vehicle (VCI) that leased the hardware to xAI. — The use of circular financing where the seller also acts as an equity partner suggests revenue may be engineered rather than organic.
-0.50Michael Burry warns that AI infrastructure financing currently mimics the opaque accounting of Cisco during the dot-com bubble. — Comparisons to historical bubbles by a high-profile skeptic can trigger sentiment shifts and increased scrutiny of AI valuations.
-0.40Continue reading
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Nvidia invested $1.9 billion as an anchor equity partner in the Valor Compute Infrastructure entity to facilitate the xAI deal. — Direct investment by the vendor to enable a customer's purchase reduces the quality of the reported sales growth.
-0.20Apollo Global Management provided $3.5 billion in debt financing for the VCI-xAI GPU lease structure. — Shows active deployment of capital into AI infrastructure, though it contributes to the overall complexity of the risk chain.
+0.10Ticker attribution
Model heads
Accused of routing high-risk debt financing through an insurance affiliate to expose retail annuity holders to concentrated credit risk and illiquid assets.
While recording high revenue, the company is criticized by Michael Burry for 'fugazi' financing and aggressive revenue booking compared to Cisco in the dot-com era.
Mentioned as a cautionary historical example of a company whose valuation detached from fundamentals during the dot-com bubble.
Mentioned neutrally as a company that uses similar infrastructure scaling approaches.
Mentioned neutrally as a company that uses similar infrastructure scaling approaches.
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