America’s biggest investor Michael Burry who is also known for predicting the 2008 housing crash has now accused Nvidia of blocking Advanced Micro Devices (AMD) from a major AI infrastructure deal. In a post shared on social media platform X (formerly known as Twitter) Burry claimed that Nvidia used its influence to prevent AMD from securing a contract tied to Oracle, describing the behaviour of the company as ‘mafia-like’. In Burry’s opinion, Nvidia’s dominance was the major factor in Sam Altman’s OpenAI walking away from Oracle’s proposed data center plan. He further added that the restrictive practices of Nvidia made it almost impossible for Oracle and OpenAI to pursue a diversified chip strategy, which ultimately resulted in the bow out of OpenAI from the deal.Recently, Bloomberg reported that Oracle and OpenAI had abandoned plans to nearly double the Abilene facility’s capacity—from 1.2 gigawatts to roughly 2 gigawatts—after months of negotiations over financing and OpenAI’s shifting demand forecasts fell apart. The report also said the collapsed talks had opened the door for Meta to consider leasing the expansion site from Crusoe, with Nvidia reportedly paying a $150 million deposit to help court Meta as a replacement tenant.
The regulatory scrutiny
Burry also alleged that the US Justice Department has been probing Nvidia’s conduct for nearly two years, raising the possibility of antitrust scrutiny. Also, Nvidia’s meteoric rise and it also recently became the world’s most valuable company with a market cap of $5 trillion has fueled concerns about whether its market power is being wielded unfairly.
Read Michael Burry’s complete post here
The nut of it is that OpenAI bowed out of the Oracle deal because it wanted NVDA Ruben and not the Blackwell, which are two different types of data center builds. Oracle borrowed heavily to secure the site and order all the hardware for the buildout around Blackwell, and OpenAI as the customer said the chips will be dated before the building is even ready. Duh. Then Nvidia got involved and paid $150 million to block AMD from getting the Oracle build contract. This is how NVDA throws its weight around to block AMD use by its customers. It is mafia-like and should be an antitrust case.The Justice Dept has been investigating NVDA for almost two years but I don’t think Trump’s DOJ will prosecute NVDA.I know Oracle and OpenAi are still partners, Meta took the build that OpenAI abandoned, etc. So the AIlluminati are already saying no big deal.But this is an absolutely huge deal. This is playing out as some of us said it would. The signs are showing up in several places, and they are the exact signs we said would show up.
