The research behind Michael Burry's next 'Big Short'

Investment Thesis - Michael Burry is betting against AI, shorting Nvidia and Palantir, despite their current profitability [1] - Scion sees parallels between the AI boom and the telecom boom of the early 2000s, suggesting overinvestment in infrastructure [4] - Scion questions whether customers investing in Nvidia's GPUs will generate sufficient revenue to justify their spending [5] Financial Analysis - OpenAI is expected to generate a little over $20 billion in revenue this year [2] - Big tech companies have quadrupled their AI investment to nearly $400 billion per year [3] Technological Concerns - The rapid release of new Nvidia chips annually may render older chips obsolete before companies can recoup their investment [6][7] - Big tech companies currently depreciate their servers over six years, which Scion argues is too long given the pace of technological advancement [6] Company Stance - Nvidia maintains that its hardware remains productive and valuable for longer than critics suggest [7] - Nvidia claims its newest chips are superior in performance and efficiency, while also assuring customers that older chips will remain useful [8]