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🚨Michael Burry just said Elon Musk and Nvidia's deal is built on fake numbers.
Burry published a detailed breakdown calling the entire structure "Fugazi", his word for fake.
He is alleging that billions of dollars in Nvidia chips are being hidden off balance sheets, and that American retirees are unknowingly funding the whole thing.
Nvidia, the world's largest AI chip company sold $5.4 billion worth of its most advanced GPUs, the GB200, to a company called Valor.
Valor is not a real operating business. It is a special purpose vehicle, a shell company created specifically to hold these chips and nothing else. Nvidia also invested $1.9 billion of its own money directly into Valor on top of the sale.
Those 100,000+ chips are now physically inside xAI's data center. xAI is Elon Musk's artificial intelligence company, the one that builds Grok. xAI is using every single one of those chips right now to run its AI models.
But here is what Burry is flagging.
Neither Nvidia nor xAI owns those chips on paper. Valor, the shell company holds legal title. That means $5.4 billion in GPU assets do not show up on Nvidia's balance sheet as inventory.
They do not show up on xAI's balance sheet as assets. They are legally invisible to both companies.
Nvidia gets to book the $5.4 billion as a completed sale and record it as revenue. xAI gets full use of the chips without owning them. And the risk disappears into a shell company in the middle.
Now here is where American retirees enter the picture.
Valor needed $3.5 billion in debt to fund this structure. Apollo provided it. Apollo is one of the largest asset managers on earth with $1.03 trillion under management and $834 billion specifically in private credit.
Apollo raised the $3.5 billion, packaged it into debt securities, and sold those securities to Athene.
Athene is Apollo's own insurance company. It sells fixed and indexed annuities, retirement savings products, to ordinary Americans.
When a retiree buys an Athene annuity, they believe their money is sitting in safe, stable investments. That money is now inside a structure funding Elon Musk's AI data center.
The numbers inside Athene are most alarming.
Athene holds $74.2 billion in reserves. It has moved $217 billion in assets into a captive insurer based in Bermuda, meaning those assets sit outside normal US insurance regulation and oversight.
Of the entire portfolio, 34.7%, equal to $103 billion, is classified as Level 3 assets.
Level 3 is an accounting classification that means there is no observable market price for these assets. No outside party can independently verify what they are actually worth.
The leverage sitting on top of those unpriced assets is 16 times.
Burry's says:
Every step of this structure is technically legal and publicly disclosed. But the entire thing was deliberately engineered across 8 to 12 steps to move credit risk off balance sheets and away from any market pricing.
- Nvidia books the revenue.
- Apollo collects the fees.
- xAI gets the computing power.
- And retirees sitting at the bottom of a 16x leveraged Bermuda insurance structure, holding $103 billion in assets with no market price carry the risk without knowing it exists.
@w1nklerr This is bullshit! Again here’s a trickle of money. Instead just give users actual data ownership back and everyone will have a passive income. They talk about doing everything except give data ownership back to the user!
@grok@JarretW@CoinSh0t Hey @grok but then downloading someone else’s app. You’re then open to your data going to that company no? Like private LLM locally ai ?
While Karen Bass is worried about getting meth-heads new grills, the LAFD has 3 dozen LESS firefighters than we had when the Palisades Fire hit. Folks, you need to vote like your life depends on it, because it does.
Georgia Power is trying to push a family off their farm via eminent domain for a data center:
“I'm fighting for the survival of my cattle farm. I'm here because a massive data center was approved just a couple of miles from my land — and I'm being hounded by Georgia Power for an easement to build transmission lines through my property for the data center.”
“I'm a local farmer, not an industrial developer. These 500-kV lines aren't for me. They are for the data centers that the boards and surrounding counties continue to approve. I have mail from lawyers stacking up on my kitchen table, wanting to take my case because they know my land is being targeted for eminent domain — These easements are permanent.
They affect my ability to graze my cattle, they lower my property value, and they destroy the rural character of this county forever. This board makes decisions to approve these massive, massive projects, but it's residents like me, young people trying to build a life here, who pay the price.
You're voting to turn our farms into a network of high-voltage wires and noisy industrial buildings.
I'm asking you to realize the real-world impacts of your votes. Every time you say yes to a data center, you're saying no to a local farmer. We aren't just numbers on a map. We are the future of the county, and right now you're making that future impossible.“
This project impacts more than 330 private properties. Georgia Power says it will negotiate purchases and easements and, if needed, use eminent domain.
They claim it's to strengthen the grid for Georgia's rising energy demand from new data centers. The lines are widely linked to Project Sail — a $17 billion hyperscale campus by Prologis, Atlas with 9 massive buildings totaling up to 4.34 million sq ft on 829 acres, demanding hundreds of megawatts, roughly a small city's power.
We cannot allow data centers to be prioritized over farmers.
This Fayette County property is being cut in half by Georgia Power for the same project. With cancer risks and dangerous construction what was once her dream home is now being stolen from her. Georgia Power is not interested in purchasing her entire home just to take the backyard
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