Core Viewpoint - Michael Burry has accused major technology companies of manipulating their earnings by extending the depreciation schedules of computing and networking equipment, labeling it as a common fraud of the modern era [1][2]. Group 1: Accusations Against Tech Companies - Burry's criticism targets tech giants including Meta, Alphabet, Microsoft, Oracle, and Amazon for gradually lengthening the useful lives of their data center and compute assets [2][4]. - By artificially extending the useful life of assets, these companies reduce annual depreciation expenses, which boosts reported earnings [5]. Group 2: Financial Implications - Burry estimates that the extended depreciation schedules will understate depreciation by approximately $176 billion between 2026 and 2028, leading to overstated profits across the sector [6]. - His calculations suggest that Oracle's earnings could be inflated by 26.9% and Meta's by 20.8% by 2028 [6]. Group 3: Burry's Investment Actions - Burry has taken a significant short position against popular AI stocks, Nvidia and Palantir, with a total investment of roughly $1.1 billion in put options [7]. - Both Nvidia and Palantir are trading at high valuations, with Palantir having a price-to-earnings ratio of 417 and a price-to-sales ratio of 116 [8].