Read Nvidia's rebuttal to Michael Burry's criticism that the AI chip titan has hurt shareholder value

Core Viewpoint - Nvidia is responding to criticisms from investor Michael Burry regarding its stock-based compensation and the sustainability of the AI boom, defending its practices and financial health [1][2]. Group 1: Nvidia's Response to Criticism - Nvidia clarified that it has repurchased $91 billion in shares since 2018, correcting Burry's claim of $112.5 billion, and stated that Burry's inclusion of RSU taxes was incorrect [1]. - The company emphasized that employee equity grants should not be conflated with the performance of its share repurchase program, asserting that its compensation practices are in line with industry peers [1]. - Nvidia's memo refuted comparisons to historical accounting frauds, asserting that its business is economically sound and its reporting is transparent [3]. Group 2: Strategic Investments and Market Context - Nvidia noted that its strategic investments represent a small portion of its revenue and an even smaller share of the $1 trillion raised annually in global private capital markets [4]. - The memo highlighted that companies within Nvidia's strategic investment portfolio primarily generate revenue from third-party customers rather than from Nvidia itself [4]. - The AI trade in the stock market has faced challenges recently, with declines attributed to concerns over valuations, circular dealmaking, and potential depreciation of high-end GPUs used for AI model training [5].