Mark Cuban and Michael Burry warn the AI boom may have a single point of failure: Nvidia

Mark Cuban and Michael Burry warn the AI boom may have a single point of failure: Nvidia GRIT ALL The All-in Podcast @theallinpod Mark Cuban: "A lot of data centers will be turned into pickleball courts." @mcuban: "What's happening now is the market leaders, Google, Meta, etc. they're borrowing hundreds of billions of dollars. And there's already a private credit problem right now. Just layer on private credit, and then you have these huge companies that have cash flow, but they're spending all their cash flow on CapEx, and then they're borrowing on top of that. That's planning for perfection. And that's going to be hard. And we're building these data centers, and if there's a price-performance curve on AI that minimizes the power requirements, there's going to be a lot of data centers that are going to be turned into pickleball courts. Everybody thinks that there's going to be so much more utilization. And there will be. It'll just scale like everybody expects. But there's going to be technological breakthroughs as well. Just like we saw fiber back in the day, it was all about putting in fiber. Then it went from 1GB fiber, to 10GB, to 100GB, and then there wasn't a fiber problem anymore. There wasn't a bandwidth problem anymore." Cassandra Unchained @michaeljburry There is a reason $NVDA's 5 year credit default swaps are going parabolic. All this overreaching by #nvda to push the circular spending to biblical proportions . CZ038477 Curncy NVIDIA Corp 79.4750 USD 1.885 Details OMGR News Credit Profile Research Bid 77.6400 Ask 81.3100 Price Chart YTD Chg 37.495 (89.32%) High 79.475 Low 38.700 Jul 28/26 CMAN NVIDIA Corp NASDAQ: NVDA 193.34 USD 0.43% +0.83 past 6 months Jul 29, 2:02 PM EDT Disclaimer 1D 5D 1M 6M YTD 1Y 5Y Max SIX MONTHS