I just discovered how to pay near zero on taxes legally using Bitcoin mining. And this is all public information in the United States tax code. How the wealthy avoid taxes legally and why Bitcoin mining is the newest loophole.So this is legal. This is something that the wealthy have known about for a very very long time. But because of Bitcoin mining, and we'll talk about Musk miners in a second, we can use the average person like you, like me, can use something in the United States tax code depreciation.An ...

Michael Burry of "The Big Short" fame is bearish on artificial intelligence (AI) stocks.Michael Burry is not your typical hedge fund manager. He did not go to business school, nor did he complete a traditional analyst program at an investment bank. Rather, Burry's background is in medicine -- completing an MD at Vanderbilt University and previously working as a neurology assistant at Stanford.Burry eventually took to the capital markets and started his own investment firm. He is primarily known for being on ...

In this photo illustration the Nvidia logo is shown on a mobile phone against the illustration of a stock market graph illustration displayed on a computer screen Nvidia reported third-quarter revenue of $57 billion - up 62 per cent year-on-year - November 20, 2025. (Photo by Dominika Zarzycka/NurPhoto via Getty Images)NurPhoto via Getty ImagesMichael Burry, the renowned investor known for predicting the 2008 housing crash, is once again placing bets against a seemingly unbeatable market. This time, he is f ...

Core Insights - Major tech companies, including Amazon, Alphabet, and Microsoft, have committed nearly $3 trillion to AI infrastructure over the past two years, with Microsoft planning $80 billion in capex for fiscal 2025, Alphabet raising its 2025 guidance to $75 billion, and Amazon's AWS projected to exceed $100 billion annually by 2026 [1][2] Group 1: Investment Commitments - Amazon, Alphabet, and Microsoft are investing heavily in AI infrastructure to secure market dominance [1] - Microsoft plans to allocate $80 billion for capital expenditures in fiscal 2025, primarily for data centers [1] - Alphabet has increased its 2025 investment guidance to $75 billion, while Amazon's AWS is on track for over $100 billion in annual revenue by 2026 [1] Group 2: Market Sentiment and Analyst Projections - Wall Street responds positively to upward revisions in earnings, driving stock prices to all-time highs [2] - Analysts are projecting 20% to 30% growth in cloud and AI revenue over the next five years [2] Group 3: Accounting Practices and Concerns - Michael Burry criticizes the AI hype, suggesting that companies are under-depreciating their assets, particularly GPUs and servers [3][4] - Burry highlights that the industry could be understating depreciation by $176 billion from 2026 to 2028, potentially inflating earnings by about 20% [6] - The practice of extending the useful life of assets reduces annual depreciation expenses, artificially boosting near-term earnings [6][5] Group 4: Timing of Asset Utilization - The timing of these accounting practices is strategic, as many chips will not reach the latter part of their assumed useful lives until 2026 to 2027, coinciding with the peak of the current hype cycle [7]

And this fight is actually escalating. And I say that because Bur, who is the investor who called the housing crisis, claims big technology is cooking the books by depreciating AI chips over 5 to 6 years when they really burn out in two to three. By his math, that understates cost by roughly 176 billion through 2028.Depreciation is just how companies spread out the cost of equipment over its useful life. So, if you say a chip lasts six years instead of three, you only expense half as much each year, which m ...

Core Viewpoint - The recent focus on depreciation concerns regarding expensive GPUs and semiconductor chips is causing significant anxiety among investors, particularly in the AI sector, leading to declines in major tech indices [2][4]. Group 1: Market Impact - The Nasdaq 100 has decreased by 6.3% in recent weeks, while the Technology Select Sector SPDR Fund has fallen over 9% due to depreciation fears [2]. - Notable short sellers, including Michael Burry and Jim Chanos, have highlighted depreciation as a critical reason for their skepticism towards the AI trade [2][3]. Group 2: Depreciation Estimates - Michael Burry estimates that Big Tech hyperscalers will understate depreciation by $176 billion from 2026 to 2028, predicting a two to three-year lifecycle for chips instead of the anticipated six years [3]. - Peter Berezin from BCA Research projects that hyperscalers will hold at least $2.5 trillion in AI assets by the end of the decade, leading to an annual depreciation expense of $500 billion, which exceeds their combined profits for 2025 [4]. Group 3: Future Projections - Kai Wu from Sparkline Capital suggests that annual depreciation values could increase from $150 billion to $400 billion over the next five years, indicating a significant financial burden on these companies [4][5]. - Wu argues that the current AI spending relative to GDP surpasses the peak of the Internet boom, although it remains below the railroad buildout peak, emphasizing the shorter useful life of AI chips [6]. Group 4: Industry Sentiment - The depreciation argument is not yet widely accepted on Wall Street or within the AI industry, with few strategists warning of such risks [6]. - Bernstein analyst Stacy Rasgon maintains that the depreciation accounting of major hyperscalers is reasonable, suggesting a divergence in views regarding the depreciation issue [7].

Gil Luria is the Head of Technology Research at D.A. Davidson. Luria joins Big Technology Podcast for a special Friday edition special report digging into the AI bubble, or whatever term you'd like to use for the questionable investment decisions in AI today. We cover all the bad stuff: debt, depreciation, and losses. We talk about Michael Burry's bet against the technology and why he might be right, and how OpenAI should play this to optimize its potential. Tune in for a comprehensive edition looking at th ...

Core Insights - The article discusses the growing concerns regarding the accounting practices of major tech companies, particularly in relation to their depreciation schedules for computing equipment, which may artificially inflate earnings growth [1][14][15] - Notable investors, including Michael Burry, have raised alarms about the sustainability of profits amid significant capital expenditures on AI infrastructure [1][14] - The four largest spenders on AI infrastructure—Meta, Alphabet, Amazon, and Microsoft—are projected to increase their combined capital expenditures by approximately 40% to $460 billion over the next year [10] Company-Specific Summaries - **Meta**: The company has extended its useful life estimates for equipment from four to five years to five and a half years, which is expected to reduce its 2025 depreciation expense by $2.9 billion. However, its stock performance has been lackluster, with only a 3% increase in 2025, significantly underperforming the Nasdaq 100 Index [1][6][11] - **Alphabet**: In contrast to Meta, Alphabet's stock has surged by 46% this year. The company has also adjusted its depreciation schedules, similar to other tech giants [1][11] - **Amazon**: Amazon has shortened the useful life of its server equipment from six years to five, reflecting a more conservative approach to depreciation amid rapid advancements in chip technology [7][15] - **Microsoft**: The company emphasizes the importance of continually upgrading its equipment to maximize efficiency and returns on investment. Microsoft has also extended the useful life of its assets, contributing to the ongoing debate about appropriate depreciation timelines [8][9][15] Industry Trends - The tech industry is experiencing a shift from "AI hype" to a demand for tangible results, as highlighted by market strategists [2][14] - Despite rising depreciation costs, which have increased from about $10 billion in Q4 2023 to nearly $22 billion in the most recent quarter, the overall profitability of these companies remains strong, with projected earnings growth of 27% for the "Magnificent Seven" [11][13][14] - The debate surrounding depreciation practices is intensifying as companies invest heavily in computing infrastructure, raising questions about the accuracy of reported earnings [10][15]

Group 1: AI Market Sentiment - Growing skepticism around artificial intelligence (AI) as a potential bubble, with experts suggesting it differs from the dot-com bubble and may take years to burst [1][2] - Bank of America analysts indicate no overbuilding of AI data centers due to limitations like power access and space [2] - JP Morgan Asset Management notes that current players are better capitalized than those during the dot-com era, with AI monetization already underway [2] Group 2: Michael Burry's Position - Michael Burry's hedge fund, Scion Asset Management, revealed a short position on Nvidia (NVDA) and Palantir (PLTR), causing significant industry concern [2] - Burry claims that AI hyperscalers are artificially inflating earnings by extending the useful life of assets, which he argues is a common modern fraud [4][6] - Allegations suggest that companies are manipulating depreciation figures to enhance earnings, raising serious concerns about accounting practices in the industry [5][6]

What do you make of this depreciation story. Because this is this kind of ripples back into all of this, the quickly depreciated chip. I thought anything from 2 to 6 years.So this is what Michael Barr Barry has been talking about, and this is what Cameron Crowe has has been talking about in his opinion column today, which is well worth reading because he's he's kind of drawing down a historical analysis, going back to the beginning of this century on depreciation and the spend on CapEx and how that has adju ...