Burry Doubles Down on NVDA Short, Calls $500B AI Deal ‘Shades of Enron’

Michael Burry is not backing off his AI-bubble call. The Big Short investor has doubled down on his short against NVDA, taking direct aim at the chipmaker’s new $500 billion Wall Street financing package and comparing the structure to Enron.

What Burry actually said

On X, Burry wrote that “that $500 billion Nvidia Wall Street stunt involves Nvidia taking 25% stakes and providing residual value guarantees on purchase of its chips. All filtered through Private Equity’s Private Credit schemes. I have an idea how that will look.”

Burry also said the situation had “shades of Enron’s effort to make wholesale power an investable class.” He added that structuring credit is a natural part of the system, but “structuring unnatural credits to prolong momentum late in the bull phase is where the worry comes in,” arguing the marketing spin is that it would be un-American to oppose more leverage.

Why the Enron comparison

Burry claims Nvidia is engaging in circular financing through new agreements with six Wall Street giants that will create special funding vehicles to back massive data centers, echoing the arrangements around Enron before its 2001 collapse, when the company created opaque funds that hid billions in toxic debts off its main balance sheet.

A Bloomberg analysis, which Burry has since shared to social media, included charts outlining how Nvidia’s $5 trillion valuation is largely tied up in circular AI contracts.

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2005 flashback and the broader short book

Burry compared today’s setup to 2005, right before the housing crash, when Goldman Sachs was holding a $3 billion complex mortgage investment that looked like it might collapse. Goldman managed to sell that position, and once they did, the floodgates opened in 2006, when firms like Merrill Lynch loaded up on the same risky paper that later helped destroy them.

Burry also added to his Palantir puts expiring in March 2027 and December 2026 with strikes in the low $100s, shorted more Palantir stock at $175, and increased his Caterpillar short at $844. On August 12, he added to shorts in Nebius at $247, Micron at $924 and Oracle at $152.

Nvidia pushes back

Jensen Huang has defended the funding deal and denied that Nvidia’s data-center arrangements are circular, saying the initiative is designed to bring independent, long-term institutional capital into the AI infrastructure market.

Nvidia has also argued that its investments constitute a small fraction of revenue and that AI startups get most of their funding from external investors.

Options market and stocks to watch

NVDA: Watch for put flow and skew shifts around the $500B financing narrative, especially as Burry’s Substack posts continue to circulate.

PLTR: Burry disclosed fresh puts into 2026 and 2027 with low-$100s strikes, so keep an eye on downside gamma and dealer positioning.

ORCL and MU: Both are named in Burry’s expanded short book tied to AI capex risk, worth tracking for unusual put activity.

CAT: A data-center power and infrastructure proxy that Burry is now short, so watch for flow tied to the broader AI buildout thesis. For more, see other news.

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