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Famed investor Michael Burry has targeted Nvidia Corp.‘s (NASDAQ:NVDA) push to unlock over $500 billion in artificial intelligence infrastructure financing, calling the initiative a “Wall Street stunt” that relies on opaque private credit arrangements.
Inside Nvidia’s Deal Structure
Nvidia recently signed a memorandum of understanding with six major Wall Street asset managers—Apollo Global Management, BlackRock, Blackstone, Brookfield Asset Management, Goldman Sachs, and KKR—to create specialized compute financing platforms.
The initiative aims to help hyperscalers and enterprises finance data centers through institutional credit rather than balance sheets alone. Nvidia CEO Jensen Huang framed the effort as the “first time that technology chips have become an investable asset class,” functioning like productive “infrastructure”.
However, Burry challenged the structure, pointing out that the deal “involves Nvidia taking 25% stakes & providing residual value guarantees on purchase of its chips.”
Describing the mechanism as being “All filtered through Private Equity’s Private Credit schemes,” Burry warned social media followers, “I have an idea of how that will look. Meet the new Boss. Same as the old Boss.”
That $500 billion $NVDA Wall Street stunt involves Nvidia taking 25% stakes & providing residual value guarantees on purchase of its chips. All filtered through Private Equity’s Private Credit schemes. I have an idea how that will look. Meet the new Boss. Same as the old Boss pic.twitter.com/vzAnWLkhxI
— Cassandra Unchained (@michaeljburry) August 12, 2026
Skepticism and Market Hype
Market strategistEd Yardeni voiced similar caution regarding Wall Street’s excitement over the non-binding agreements, describing the market’s response as “kind of ho hum.”
Warning on CNBC, he said that “there’s a little bit of hype so far.” Yardeni noted that investors must be “pretty selective” because capital markets will ultimately create “winners and losers.”
Mounting Debt and Private Credit Risks
Concerns surrounding heavy borrowing for AI infrastructure extend across the broader credit landscape. Goldman Sachs Research estimates that AI-related debt issuance has reached nearly $500 billion in 2026, with credit sales desks noting investor “indigestion” over rising duration and issuer concentration.
