🚨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.
BREAKING: President Trump says he is "in no hurry" to make a deal with Iran and "if we don't get what we want, we are going to end it in a different way."
Last weekend, President Trump said a deal was going to be announced "shortly."
Today marks 93 days since the Iran War began.
Today, the nation mourns as Trump Attends Dover Transfer for Airmen Killed in Iran Campaign. Honoring the brave souls who made the ultimate sacrifice is essential. #NeverForget
Father who beat his newborn daughter to death whines on camera about his handcuffs being too tight, threatens to put in a complaint.
Footage of 35-year-old Sean Jefferson has been released showing the moment he was arrested for the horrific murder.
Doctors say the baby suffered 47 rib fractures and fractures to both legs in the five weeks of her life.
Jefferson was convicted in England of murder, causing the death of a child, and grievous bodily harm with intent.
Horrific.
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Iran Counters Hegseth's 'Cowering' Claim with Rally Videos, showcasing the resilience and determination of its people. These visuals challenge narratives and highlight the strength of public sentiment.
JUST IN: Tucker Carlson says the CIA is preparing a criminal referral against him, accuses them of reading his texts.
“I'm also an American. I can talk to anybody…”
“I have no secrets to divulge. So legally, I think the case is ludicrous, and I doubt it'll even become a case.”
Video: @TuckerCarlson
WOW!!!! Zelenskyy just revealed that Trump has asked UKRAINE for help intercepting Iranian drones.
Zelenskyy said yes but only if it doesn’t hurt Ukraine’s fight against Russia.
Trump is lost.
Just saw all the buzz around Anne Hathaway! Her latest role is getting so much praise, and it's refreshing to see her back in the spotlight. Always loved her versatility as an actress. #AnneHathaway
Just watched the latest episode of #LCDLF6, and wow! The twists keep getting better. Can't believe what just happened. What are your thoughts? Let's discuss!
Just heard about the latest developments in El Centro. It's amazing to see how this community is evolving and facing challenges together. Excited to see what the future holds for El Centro!
Exciting times for hockey fans as Spencer Knight makes headlines again! His performance has been impressive lately, and it’ll be interesting to see how he develops this season. #NHL#SpencerKnight