Tom Lee of Fundstrat has responded to Michael Burry’s comparison of Nvidia’s $500 billion funding deal with groups including Apollo, BlackRock and KKR to Enron’s fraudulent accounting practices. The Wall Street Journal revealed that nine tech giants carry $3 trillion in AI commitments off their balance sheets, 50 times the size of Enron’s bankruptcy, including $1.2 trillion in leases yet to commence and $1.9 trillion in chip purchases. Lee argued that these figures provide an incomplete picture because gross obligations in finance always dwarf underlying assets, citing options and derivatives as examples. Nvidia CEO Jensen Huang defended the deal as bringing independent, long-term capital to AI infrastructure. Pence of Pence Capital Management forecasts US AI spending will exceed the $866.6 billion defense budget by 2027, while only 30% of companies report productivity gains from AI.
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