vasiliverse

I wanna now.

[vasiliverse @VasiliVerse]

@bergd0rfdipper korkuyorum.

[vasiliverse @VasiliVerse]

@bergd0rfdipper @hilalssw

[Beşiktaş JK @Besiktas]

ꜰüʀ ᴅɪᴇ ꜰᴀᴍɪʟɪᴇ.

Alexander Nübel.

[Elon Musk @elonmusk]

Accurate 😂

[Tutorial @tutorialtoken]

Turn any video or article into notes, flashcards, and quizzesTurn any video or article into notes, flashcards, and quizzes.

[hillofdirt @hillofdirt]

@Astro_Jessica @ResethO @Space_Station @NASA Straight out of Project Hail Mary 🤯

[Jessica Meir @Astro_Jessica]

There is a lot going on right now on the @Space_Station, but fortunately we are all safe and witnessed a spectacular southern aurora show yesterday thanks to a recent solar event.

[tae kim @firstadopter]

YOU'RE NEVER GONNA KNOW WHAT HAPPENED NEXT

[Bull Theory @BullTheoryio]

🚨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.

[vasiliverse @VasiliVerse]

@bergd0rfdipper @aarrigato

[vasiliverse @VasiliVerse]

@bergd0rfdipper @aarrigato kaybol lan performative

[Cassandra Unchained @michaeljburry]

Per Slok, 87% of VC funding is directed at AI, 49% of investment grade bond issuance is AI, and 38% of high yield bond issuance is linked to AI.

During the internet boom, in 1999, less than 40% of VC funding was linked to internet companies.

Broadening to the wider tech-media-telecom (TMT) bubble, in 1999, VC funding for TMT hit 80% of all funding. TMT bonds were 40-50% of the high yield bond issuance in 2000 and 25-30% of total investment grade bond issuance.

Over $100B investment grade debt issued in 1999-2000 became junk by 2002.

High yield debt at 38% today vs 40%-50% back then belies the idea that today’s AI debt issuance is cleaner, backed by more profitable companies today.

[vasiliverse @VasiliVerse]

Why 'Oppenheimer' falls short: A deep dive into Nolan's latest film that didn't quite hit the mark. Read more: https://t.co/Q0TBsM3AlB