Nvidia(US:NVDA) Business Insider·2025-12-22 13:46Core Viewpoint - Michael Burry argues that Nvidia's approach to developing power-hungry graphics chips could lead to the U.S. losing the AI race to China due to China's superior energy infrastructure and capacity [1][2]. Group 1: Nvidia's Market Position - Nvidia's stock has increased over 12 times since the beginning of 2023, making it the most valuable public company with a market capitalization of $4.4 trillion [4]. - The company reported approximately $148 billion in revenue and $77 billion in net income in the first nine months of the year, with high demand for its Blackwell chips and sold-out cloud GPUs [4]. Group 2: Burry's Critique of Nvidia - Burry claims that Nvidia has a "death grip on development" due to its partnerships with key players in the AI industry, limiting competition [3]. - He criticizes Nvidia's focus on power-hungry chips and suggests a shift towards AI-tuned ASICs for more efficient performance [2]. - Burry has raised concerns about Nvidia's stock-based compensation and the "give-and-take" deals with companies like OpenAI and Oracle [6]. Group 3: Broader Implications for the AI Industry - Burry believes that the U.S. is investing in a race it is structurally positioned to lose, emphasizing the need for a strategic shift in AI chip development [2]. - He has expressed that Nvidia and other AI companies may be inflating a tech bubble, with exaggerated claims about the longevity of their chips to enhance short-term earnings [5].