‘Big Short’ investor Michael Burry accuses AI hyperscalers of artificially boosting earnings
CNBC
In a post Monday on X, the Scion Asset Management founder alleged that “hyperscalers” — the major cloud and AI infrastructure providers — are understating depreciation expenses by estimating that chips will have a longer life cycle than is realistic.
“Understating depreciation by extending useful life of assets artificially boosts earnings - one of the more common frauds of the modern era,” Burry wrote.
“Massively ramping capex through purchase of Nvidia chips/servers on a 2-3 yr product cycle should not result in the extension of useful lives of compute equipment. Yet this is exactly what all the hyperscalers have done.”
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