Subject: Re: Bubble Watch
https://www.cnbc.com/2025/11/1...

‘Big Short’ investor Michael Burry accuses AI hyperscalers of artificially boosting earnings


“Understating depreciation by extending useful life of assets artificially boosts earnings - one of the more common frauds of the modern era,” Burry wrote. “Massively ramping capex through purchase of Nvidia chips/servers on a 2-3 yr product cycle should not result in the extension of useful lives of compute equipment. Yet this is exactly what all the hyperscalers have done.”


He has a point... the idea that these GPUs are still going to be providing value 3+ years from now seems unlikely.


tecmo
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