Burry Challenges Nvidia GPU Depreciation, $500 Billion AI Financing Push

Michael Burry, the investor known for betting against U.S. subprime mortgages, has argued since November 2025 that Meta Platforms, Alphabet, Microsoft, Amazon and Oracle are understating costs by stretching the useful lives of Nvidia GPUs and servers to five or six years despite rapid product cycles. He estimated the accounting shift could suppress depreciation by $176 billion from 2026 through 2028, putting the durability of AI profits and the collateral behind data-center borrowing under scrutiny.

On Aug. 10, Nvidia said it had signed memorandums of understanding with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to create independent platforms capable of mobilizing more than $500 billion in third-party capital for AI infrastructure. Burry said the plan could obscure risky debt by distributing exposure to institutional investors. CoreWeave countered on Aug. 11 that long-term take-or-pay contracts keep its fleet fully utilized, saying Nvidia’s A100, introduced in 2020, has been booked through 2029 at attractive pricing, evidence that older chips retain commercial value.