Nvidia Reportedly Moves to Backstop $250 Billion in OpenAI Data Center Financing, Michael Burry Says, 'Ar

July 27, 2026 - 06:27

Michael Burry, the investor known for betting against the housing market before the 2008 financial crisis, has raised fresh concerns about the artificial intelligence sector. He and tech analyst Ed Zitron are questioning Nvidia's reported plan to backstop up to $250 billion in financing for OpenAI's data center projects. The move, if confirmed, would see the chipmaker act as a financial guarantor for massive infrastructure buildouts tied to the AI startup.

Burry, who has a history of spotting market excess, warned that such a commitment signals a dangerous level of risk concentration. He suggested that the AI boom is taking on the characteristics of a speculative bubble, with companies piling debt onto unproven revenue models. Zitron echoed those fears, arguing that the scale of the financing suggests a desperate attempt to sustain momentum rather than a sound business strategy.

The reported arrangement would involve Nvidia providing credit support to lenders funding OpenAI's sprawling data center network. This would effectively tie the chipmaker's balance sheet to the success of OpenAI's commercial operations. Critics argue that if AI demand fails to meet sky-high expectations, the fallout could ripple through the tech sector. Neither Nvidia nor OpenAI has officially confirmed the deal, but the speculation has already fueled debate about whether the industry is overextending itself.