Jensen Huang Addresses Michael Burry's Skepticism on Nvidia GPU Profits
Nvidia CEO Jensen Huang responded to investor skepticism from Michael Burry, who has a short position in the company. Burry argues that cloud companies are inflating profits by depreciating AI chips too slowly over six years instead of two or three. He estimates this could lead to $176 billion in understated depreciation costs for firms like Google, Microsoft, and Oracle between 2026 and 2028. Huang countered the argument with data showing strong demand for GPU rentals, including a recent 22% increase in H100 chip rental prices to $3.28 per hour. He also highlighted CoreWeave’s nine-year contract on six-year-old A100 GPUs as evidence of their long-term value and utility. Short seller Jim Chanos joined the debate, questioning why companies don’t rent out chips themselves or raise prices further if they are so valuable. The discussion highlights a key financial issue in AI investing: whether cloud providers’ accounting practices distort true profitability.
Topics: AI chip industry Depreciation accounting Michael Burry Nvidia Short selling