NVIDIA's AI Boom: Analyzing Distorted Demand and the Looming "Bezzle" in the AI Supply Chain
By
Michael Burry
Summary
This article analyzes NVIDIA's market position amid surging AI demand, arguing that current demand is distorted by a temporary training and benchmarking phase. It warns of a bullwhip effect through NVIDIA's supply chain and data-center financing, and introduces the concept of the "bezzle" (embezzlement/phantom value) looming over the AI industry. The piece suggests the current boom may be unsustainable as demand is concentrated among a few buyers whose needs will shift once the training phase ends.
Source
Twitter / XNVIDIA's AI Boom: Analyzing Distorted Demand and the Looming "Bezzle" in the AI Supply Chainmichaeljburry.substack.comKey quotes
· 4 pulledThey are just flying empty airplanes around.
NVIDIA is the North Star, Orion, the whole Milky Way.
That distorted demand is working like a bullwhip into NVIDIA's own supply chain through custom supply commitments as well as downstream into data-center financing.
Looming over it all is the bezzle, which once seen, cannot be unseen, and once revealed, does not exist.
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