Michael Burry, the investor known for predicting the 2008 housing crisis, has opened short positions against Oracle and Nebius Group, expressing skepticism about the financial foundations of the AI infrastructure boom. His thesis centers on the argument that these companies are not depreciating their GPUs fast enough, which artificially inflates their earnings. He estimates that Oracle’s earnings could be overstated by approximately 26 to 27 percent by 2028 due to undervalued GPU depreciation. Nebius, which has secured AI compute contracts worth up to 27 billion dollars with Meta over five years, is also targeted by his bearish outlook on the sector. Burry has highlighted that hyperscalers are collectively projecting 176 billion dollars in AI-related capital expenditures, which amplifies the potential scale of the depreciation problem.
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