“The Big Short” investor Michael Burry is escalating his ongoing clash with Nvidia Corp.‘s (NASDAQ:NVDA) leadership, firing back at CEO Jensen Huang by pointing to the chipmaker’s latest 10-Q filing as evidence supporting his concerns over circular financing.
Spotlighting Nvidia’s agreement to guarantee billions for an OpenAI data center, Burry accused the market of ignoring clear red flags, warning that investors are “Whistling past the graveyard.”
What NVDA’s 10-Q States
The conflict reignited after Burry shared an analysis of Nvidia’s newly released second-quarter 10-Q document, highlighting the mechanics of the sector’s financing model.
The filing formally disclosed Nvidia’s agreement with SoftBank’s SB Energy for an OpenAI-leased data center. According to the 10-Q, Nvidia has entered into guarantees, “capped at a total of $105 billion,” to provide credit support for a land, power, and shell buildout on behalf of OpenAI at SB Energy’s PORTS Technology Campus in Ohio.
The filing notes that the campus involves leases for “approximately 4.25 gigawatts of IT load” and will “exclusively host NVIDIA AI infrastructure.” Pointing to these massive commitments as evidence of a self-reinforcing financial loop, Burry offered a stark four-word warning: “Whistling past the graveyard.”
NVDA Management Downplays Circular Financing Concerns
Burry’s attack directly challenges Nvidia management, who aggressively defended their balance sheet strategy during their latest earnings call. Addressing the massive OpenAI guarantees, executives pushed back against critics alleging the company is simply funding its own demand.
CFO Colette Kress directly tackled the controversy during her prepared remarks. “We recognize the scale of this support, and we know some will call this circular financing. We see it differently.”
Huang was equally resolute in dismissing the idea that these private credit deals artificially inflate revenue. Defending the Ohio project, Huang stated, “No. OpenAI will pay the lease.”
The Bear vs. The Bull
While Huang frames the massive capital deployment as a necessary masterstroke to secure infrastructure for frontier AI labs that are outgrowing their credit profiles, Burry remains deeply skeptical.
Even after buying December Nvidia call options as a hedge against his bearish position, Burry maintains a massive short position against the broader AI ecosystem, insisting that the mechanics revealed in the 10-Q validate his long-term bearish thesis.
How Has Nvidia Performed in 2026?
At the last check, the NVDA stock was trading 0.64% lower in overnight trading. It was up 22.24% year-to-date, advanced by 25.54% over the last year, and rose 28.66% over the last six months. It closed 8.74% higher at $227.98 per share on Thursday.
Benzinga’s Edge Stock Rankings indicate that NVDA maintains a strong price trend in the short, long, and medium terms, with a solid growth score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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