Overview
- Burry says hyperscalers are understating depreciation by lengthening assumed lifespans of AI chips, a practice he contends inflates reported profits.
- He estimates about $176 billion of depreciation would be understated from 2026 through 2028, with Oracle and Meta cited as facing materially overstated profits by 2028.
- Scion Asset Management disclosed large put options as of September 30 with notional values of roughly $187 million against Nvidia and $912 million against Palantir.
- CNBC reports it could not independently confirm that companies are applying the extensions Burry alleges under GAAP, which allows management judgment on useful-life estimates.
- Forbes counters Burry’s premise by arguing older accelerators are often repurposed rather than scrapped, while Burry says he will release further details on November 25.