Michael Burry criticizes NVIDIA $250B backstop for OpenAI Ohio project
Michael Burry, America's biggest investor, just criticized NVIDIA's plan to provide a $250 billion backstop for a huge Ohio data center for OpenAI.
The project is massive, costing over $500 billion and leasing a 10-gigawatt site.
Burry and other analysts are worried that these giant AI deals could backfire if growth slows, especially with complex funding setups.
NVIDIA invested $30B, may finance $350B
NVIDIA has already poured $30 billion into OpenAI and might finance chip buys worth another $350 billion. Critics point out that OpenAI isn't profitable yet and doesn't have a solid credit rating, making this risky.
The Ohio project relies on US federal land and Japanese investment, with Japan putting up $33 billion for a natural gas plant.
If all goes as planned, the site will start generating power by 2028, but investors are watching closely because the stakes (and risks) are sky-high.