Michael Burry said he sold half his call position, after his Nvidia options rallied, and flagged Nvidia’s $105 billion guarantee to OpenAI as evidence of circular financing.
Burry bought December Nvidia calls with strikes in the mid‑to‑high $200s and said they appreciated between 50% and 60% in less than a day, prompting him to liquidate half the position less than 24 hours after opening it while remaining long-term bearish on the shares.
“They did their job,” he wrote, describing the calls as protection for a larger bearish stance.
His broader portfolio moves include adding shorts in Nvidia, Oracle, Palantir, Nebius and Caterpillar, with Nvidia puts alone making up 3.5% to 4% of his holdings and total short‑stock exposure said to have exceeded 21% of the portfolio.
Burry’s critique followed a post noting Nvidia had disclosed in the 10-Q details of its arrangement with OpenAI, a flashpoint in an ongoing debate about whether chipmakers are effectively underwriting customer AI buildouts.
He also warned excessive AI capital spending could ultimately produce “shocking reductions in earnings.”
