Meta isn’t even mentioned in this article. I get how they seem connected but Burrys bet was against Palantir and Nvidia. This news about meta is tangentially related maybe but not a sure sign of Burrys bet
yes people but with all the circular investment, this is the first domino falling
meta may suffer a drop in stock price from speculators but this is “real” bad news for Nvidia who would have been a large benefitiary of the $600 billion investment as the produce the necessary hardware
They’re gonna get some finance bros to take on debt to build the DC for them. So the fact that they can’t afford isn’t an immediate problem. If the debt is incurred and spent on the DC however, and there’s no revenue… then the chickens come home to roost.
Google, who are not short of a few bob, raised $25B in bond issues so they can keep up with AI build out. All of big tech seen terrified they will be left behind if they don’t have oodles of floating point compute on tap.
That will burst it. This is why the billion dollar put. He had this info in advance.
Probably staged this to try and backpedal open weights models, but that ship has sailed.
Burry didn’t bet against Meta, but rather 9/10 against palantir and 1/10 against Nvidia.
I was thinking more about the overall bubble bursting.
what billion dollar put?
https://www.bbc.com/news/articles/c867vyn2evlo
Meta isn’t even mentioned in this article. I get how they seem connected but Burrys bet was against Palantir and Nvidia. This news about meta is tangentially related maybe but not a sure sign of Burrys bet
yes people but with all the circular investment, this is the first domino falling
meta may suffer a drop in stock price from speculators but this is “real” bad news for Nvidia who would have been a large benefitiary of the $600 billion investment as the produce the necessary hardware
They’re gonna get some finance bros to take on debt to build the DC for them. So the fact that they can’t afford isn’t an immediate problem. If the debt is incurred and spent on the DC however, and there’s no revenue… then the chickens come home to roost.
Google, who are not short of a few bob, raised $25B in bond issues so they can keep up with AI build out. All of big tech seen terrified they will be left behind if they don’t have oodles of floating point compute on tap.
Big tech should make a point of floating deez nutz in their mouths