By Nauman Khan
Publication Date: 2026-08-12 15:39:00
This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) is facing fresh scrutiny over its planned $500 billion AI infrastructure financing initiative after investor Michael Burry (Trades, Portfolio) questioned the structure of the transactions in a Wednesday post on X.
The program involves Nvidia and financial firms including Apollo Global Management (NYSE:APO), Blackstone (BX), BlackRock (BLK), Brookfield (BN), Goldman Sachs (NYSE:GS) and KKR (NYSE:KKR). The companies are working on financing platforms intended to help fund large-scale computing projects.
Under the proposed arrangement, Nvidia could provide support covering as much as 25% of certain projects through a mechanism tied to the future value of its hardware. Burry argues that the structure could create additional financial exposure if projects fail to generate expected returns.
Burry also pointed to a financing chain involving debt, Nvidia equity and purchases of Nvidia GPUs that are then leased for AI computing operations. He compared the arrangement with financial structures that contributed to risks during the 2008 crisis.
The criticism comes as Nvidia shares have continued to climb, with the stock up more than 2% Wednesday. Burry has also disclosed bearish exposure to Nvidia through put options, adding another element to his criticism of the company’s AI investment strategy.