Michael Burry on Nvidia

Michael Burry has publicly accused Nvidia of engaging in "mafia-like" conduct within the burgeoning artificial intelligence chip market, suggesting this dominance should prompt antitrust investigation. The core evidence for his stance involves an alleged intervention where he claims the company paid a significant sum to block a rival, Advanced Micro Devices (AMD), from securing a major AI infrastructure contract with Oracle Corporation and OpenAI. This alleged action is cited as an example of how the chipmaker uses its considerable weight to suppress competition among its customers for data center hardware.

These accusations arrive as Nvidia controls the largest share of the rapidly expanding AI accelerator market, with its graphics processing units being central to global AI buildouts. Furthermore, he suggested that the U.S. Justice Department has reportedly been investigating the company's practices for nearly two years, though he expressed doubt that any enforcement action would occur under the current political administration. The investor implies that the extraordinary growth and market position of Nvidia may be built upon questionable or monopolistic tactics that invite regulatory concern.