Jensen Huang Addresses Michael Burry's Short Case Against Nvidia
Nvidia CEO Jensen Huang responded to short seller Michael Burry’s bear case on AI chip accounting by highlighting GPU rental data and long-term contracts. Burry argues that cloud companies are underestimating depreciation costs for AI chips, inflating their profits. He estimates a $176 billion understatement in depreciation from 2026–2028 for firms like Google, Microsoft, and Oracle. Huang shared data showing rental prices for Nvidia H100 GPUs increased by 22% to $3.28 per hour within one month, demonstrating ongoing demand. He also pointed out a nine-year contract from CoreWeave using six-year-old A100 chips as evidence of long-term value and durability. Short seller Jim Chanos joined the debate, questioning why Nvidia doesn’t rent its own hardware or raise prices further if GPU depreciation is so low. The discussion centers on whether AI chip accounting practices are inflating cloud providers’ earnings.
Topics: AI investing depreciation accounting Michael Burry Nvidia short positions