By Rich Duprey
Publication Date: 2026-11-12 17:14:00
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On November 6, 2026, Microsoft (NASDAQ:MSFT | MSFT Price Prediction) declined to renew a computing arrangement with Oracle (NYSE:ORCL). The reported reason was that the older GPUs no longer suited its changing requirements. Oracle pushed back, saying demand remains strong and pointing to some GPU contracts renewed at 20% premiums. One lapsed contract is thin evidence. Still, it is the kind of real-world pricing data that Michael Burry’s warning has lacked.
Burry argued that hyperscalers were stretching chip depreciation schedules past the chips’ realistic economic lives. By his estimate, that could understate depreciation expenses by $176 billion through 2028, and he specifically identified Oracle and Meta, meaning Meta Platforms (NASDAQ:META), as companies at risk. If chips lose value faster than the books assume, then reported…