By Theron Mohamed
Publication Date: 2025-12-22 13:46:00
Michael Burry says Nvidia is pushing the idea that building graphics chips that consume more and more power is the best path to advancing AI — and the result could be the US losing the AI race to China.
“Exactly and sadly,” Burry wrote on X late Saturday, responding to another user’s comment that called Nvidia the “gangster of the AI neighborhood” as it has “shut down any narrative that even hints at reducing GPU demand.”
In another post over the weekend, Burry shared a chart showing China has more than double America’s electric generation capacity, and is expanding its energy infrastructure at a much faster rate.
Nvidia has framed AI innovation as “just figuring out how to power and to cool bigger, hotter silicon,” Burry said. But China’s huge lead in building out power sources means companies in the US are “plowing capital into a race it is structurally positioned to lose.”
Burry said the US needs to shift its focus from developing more and more “power hungry” chips toward advancing “AI-tuned ASICs” — application-specific integrated circuits that are designed to do a particular task quickly and efficiently.
