The Man Who Predicted 2008 Crash Just Warned about AI 🍎

Michael burry, the investor behind “the big short” just published a detailed breakdown questioning a $5.4 billion NVIDIA-XAI transaction. the structure involves nvidia selling 100,000+ chips to a special purpose vehicle called valor, which then leases them to XAI. NVIDIA also invested $1.9 billion into valor, meaning it partially funded the entity that bought its own chips. the financing was arranged by apollo and sold to athene, an insurance company that manages retirement annuities. Burry’s con by Michael burry, who predicted 2008 crash, he exposed how Elon Musk and Nvidia's AI deal is suspicious. So basically, the deal is that Nvidia sold $5.4 billion worth of its most advanced AI chips to a company called Valor. Valor is a special purpose vehicle, which is basically a company created for a specific purpose. And this purpose was to buy these chips and then lease them to Elon Musk's AI company, XAI. But here's the catch: Nvidia also invested $1.9 billion into Valor. This means Nvidia partially funded the entity that bought its own chips. The financing for Valor was arranged by Apollo, a massive private credit fund that manages over $1 trillion. And Apollo got the money from Athene, an insurance company that manages retirement annuities for Americans. So, in simple terms, American retirement money is being used to buy Nvidia chips for Elon Musk's AI company. Michael Burry, who predicted the 2008 financial crisis, is now warning about AI. He claims that this deal is suspicious and that the structure is designed to hide the true risk. He says that Nvidia is essentially selling chips to itself through a shell company, and that the money is flowing from American retirees to fund Elon Musk's AI ambitions. Burry believes that this is a complex and risky transaction that could have serious consequences for the market. He's basically saying that the AI boom is built on a shaky foundation, and that investors should be cautious. He also points out that the deal was structured in a way that makes it difficult to understand who is ultimately responsible if something goes wrong. This is similar to the complex financial instruments that led to the 2008 crisis. So, what's the real risk here? Michael Burry's concern is that this deal is artificially inflating the value of Nvidia and other AI companies, and that it could lead to a market crash. He believes that the money is being funneled from ordinary people's retirement savings into speculative AI ventures, without proper oversight or transparency. He's basically saying that the AI hype is masking a dangerous financial game, and that the average person will pay the price when it all comes crashing down. He's urging people to be aware of these risks and to be cautious about investing in AI right now. Follow for more.